Mindray Medical International Limited ("Mindray", NYSE: MR), a leading developer, manufacturer and marketer of medical devices worldwide, announced today a definitive agreement to acquire the remaining stake in Wuhan Dragonbio Surgical Implant Co., Ltd. ("Dragonbio") for approximately US$72.6 million.
Dragonbio is a domestic medical orthopedic-product provider that specializes in trauma, spine, joint and other surgical products. Prior to today's announcement, Mindray already has a controlling stake of Dragonbio, which was acquired in 2012. The transaction will be funded through Mindray's existing cash reserves and is expected to close in July. Mindray expects the deal to have non-material impact on its 2015 financial results.
"Since we acquired a majority stake of Dragonbio in 2012, the integration has been well on track," said Mr. Minghe Cheng, Mindray's Co-Chief Executive Officer and Chief Strategic Officer. "We are optimistic about the prospects of the orthopedic consumable market in China and have therefore decided to make Dragonbio our wholly owned subsidiary. The transaction is expected to help us manage and expand the business more efficiently and effectively through our strong capital position, large-scale operational experience and worldwide presence."
Mindray fourth quarter net revenues increase 19.7% to $316.1 million