Philips to Acquire China's No.2 Patient Monitor Manufacturer in Bid to Penetrate Emerging Markets

The transaction is expected to close sometime in the second quarter of 2008, upon which Shenzhen Goldway (Shenzhen, China) will become part of the patient monitoring business within the Healthcare group of Philips (Amsterdam, Netherlands). The price and terms for the transaction were not disclosed.

The acquisition strengthens Philips' already leading position in China's premium-segment patient monitoring market. In addition, Goldway, with a record of providing medical devices complementary to that of Philips' product range, will help increase Philips' presence in the world's economy-priced emerging markets, including China. The global patient monitoring equipment market is currently estimated at EUR 2 billion per year.

Goldway offers patient monitoring solutions that range form the basic stand-alone unit to fully-equipped monitors, including some that are FDA-approved or carry the CE marking. The company has strong hospital-focused service capabilities, a dealer network, and cost-effective manufacturing capabilities that help make it the second largest domestic patient monitoring equipment maker in China behind Mindray Medical international Ltd. (Shenzhen, China)

Philips' acquisition comes on the heels of the purchase by Mindray, in mid-March of this year, of US-based competitor Datascope Corp.'s (Montvale, NJ, USA) patient monitoring business, in a move that provided Mindray with a significant distribution base across the US and EU.

Mr. Zeng Jinchuan, General Manager of Goldway said, Becoming part of a global healthcare company like Philips is for us the perfect step to maximize this growth opportunity in a very interesting geographical market. We are very confident that we share the same culture, business goals, and commitment to the market to make this happen. We have much to learn from each other, and much that can be leveraged between us.

Royal Philips Electronics of the Netherlands is a global leader in medical diagnostic imaging and patient monitoring systems, lighting equipment, and consumer lifestyle products. With sales of EUR 27 billion in 2007, Philips employs approximately 134,200 employees in more than 60 countries worldwide.

Founded in 1995, Shenzhen Goldway Industrial, Inc.'s products include a full range of patient monitors for both acute and non-acute care, solutions for women's health, and anesthesia machines. The company has the distinction of being the first company in China to receive FDA certification for two of its patient monitors. The company has 290 employees, and it grew its 2007 sales by approximately 30%.


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