Chindex-Fosun Pharma Joint Venture, Chindex Medical, To Participate in Acquisition of Alma Lasers; Fosun Pharma Increases Investment in Chindex Medical
BETHESDA, Md., April 29, 2013 /PRNewswire/ -- Chindex International, Inc. (NASDAQ: CHDX, "Chindex"), an American healthcare company providing healthcare services in China, today announced that Chindex Medical Limited ("CML"), its joint venture with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma"), has agreed to acquire approximately 36.17% of Alma Lasers, Inc. ("Alma") for approximately $53.5 million as part of a purchase by a group of buyers for substantially all of Alma. The buying group, which consists of CML, another subsidiary of Fosun Pharma and the Pramerica-Fosun China Opportunity Fund, would acquire substantially all of Alma indirectly through a jointly-owned entity. The total acquisition price by all buyers for Alma would be approximately $240 million, including indebtedness incurred at the Alma level, without recourse to CML.
In order to help fund the acquisition by CML of its interest in Alma, Fosun Pharma has agreed to invest approximately $41 million in cash in CML for additional equity in CML. Following such investment, CML, which currently is owned 51% by Fosun Pharma and 49% by Chindex, would be owned 70% by Fosun Pharma and 30% by Chindex. In connection with this investment Chindex has waived its participation in such investment and agreed to increase FosunPharma's board seats at CML from four of seven to five of eight.
Alma is a leading global medical energy-based (including lights, laser, radio frequency and ultrasonic) device manufacturer, with a comprehensive product offering and international sales network. Alma has developed leading R & D capabilities globally in the medical and aesthetic equipment manufacturing field and established a global brand in the market segment. Alma has an established record of sustained performance results. In 2012, Alma recorded nearly $100 million total revenue.
Roberta Lipson, President and CEO of Chindex and Director of CML, said, "We are pleased that Fosun Pharma's acquisition of Alma Lasers will benefit our CML joint venture. As a leading aesthetic device manufacturer, Alma is an ideal addition to CML's scope of specialized products and services and the acquisition represents an important step in its growth strategy. We believe the Alma acquisition will contribute significant returns for Chindex and its shareholders over the long term."
About Chindex International, Inc.
Chindex is an American healthcare company providing healthcare services in China through the operations of United Family Healthcare, a network of private primary care hospitals and affiliated ambulatory clinics. United Family Healthcare currently operates in Beijing, Shanghai, Tianjin, Guangzhou and Wuxi. The Company also provides medical capital equipment and products through Chindex Medical Ltd., a joint venture company with manufacturing and distribution businesses serving both domestic China and export markets. With thirty years of experience, the Company's strategy is to continue its growth as a leading integrated healthcare provider in the Greater China region. Further company information may be found at the Company's website at http://www.chindex.com.
About Shanghai Fosun Pharmaceutical (Group) Co., Ltd.
Fosunpharma is a leading healthcare company in the PRC and primarily engaged in business segments including pharmaceutical manufacturing, pharmaceutical distribution and retail, healthcare services and diagnostic products and medical devices.
About Chindex Medical Limited
Chindex Medical Limited is a joint venture between FosunPharma and Chindex International, Inc., dedicated to bringing the world's leading edge healthcare technologies and products to China through the Company's national distribution infrastructure, while developing and manufacturing quality healthcare devices and consumables in China to serve the global marketplace. The Company provides comprehensive distribution services, including product registration, sales and marketing, clinical applications support and training, and technical service to numerous major multinational manufacturers of medical products. The Company has particular expertise in successfully introducing novel and paradigm-changing technologies to China's healthcare marketplace, as well as in helping Chinese hospitals to access foreign-government sponsored financing in the form of loans and loan guarantees from the U.S. Export-Import Bank and the German KfW Development Bank. With over 30 years of distribution experience and over 15 years of manufacturing experience, the Company's vision is to become a global leader in the healthcare market.
About Alma Lasers
Alma Lasers, Inc. is a provider of laser, light-based and radiofrequency devices for aesthetic and medical applications. Alma Lasers remains dedicated to delivering innovative multitechnology/multi-application systems designed to meet the unique needs of today's practitioners. Alma's modular, cost-effective, high-performance systems enable practitioners to confidently offer state-of-the-art aesthetic treatments to their patients. Practitioners use Alma Lasers' products for non-invasive aesthetic procedures such as hair removal, acne treatment, wrinkle reduction, fractionated ablative and non-ablative skin resurfacing, vascular and pigmented lesions and leg vein treatments.
Safe Harbor Statement
Statements made in this press release relating to plans, strategies, objectives, economic performance and trends and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, the factors set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, updates and additions to those "Risk Factors" in the Company's interim reports on Form 10-Q, Forms 8-K and in other documents filed by us with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue" or similar terms or the negative of these terms. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.
SOURCE Chindex International, Inc.