GE to acquire Vital Signs for US$860m
2 August 2008
GE Healthcare is to take over Vital Signs, Inc. (NASDAQ: VITL) for
approximately US$860 million. Vital Signs is a global provider of
medical products applicable to a wide range of care areas such as
anaesthesia, respiratory, sleep therapy and emergency medicine.
The takeover is subject to Vital Signs shareholder and regulatory
approval and is expected to be completed at the end of this year. Under
the terms of the agreement, shareholders of Vital Signs will receive
$74.50 per share in cash for each Vital Signs share they own.
Vital Signs will become part of GE Healthcare’s Clinical Systems
business, which provides products for patient monitoring, anaesthesia
delivery and acute respiratory care. The strong strategic fit between
the two businesses will offer substantial customer benefits through
complementary product and service offerings.
"This acquisition is consistent with GE's strategy to invest in
high-technology, innovative businesses that deliver top-line growth,
earnings expansion and expanded margins," said John Dineen, the newly
appointed President and CEO of GE Healthcare. "Vital Signs has
consistently grown at double-digit rates while generating strong
operating margins. Its products are a great complement to our existing
anaesthesia, monitoring and respiratory offerings."
Terry Wall, CEO of Vital Signs said, “This is a tremendous
opportunity for us to further develop the Vital Signs business. We are
proud of our innovative single patient use technologies and the
contribution they have made to reduce patient mortality through limiting
hospital acquired infections. By joining GE Healthcare, we see a huge
opportunity to bring these products to many more hospitals and improve
the care and health of patients worldwide.”
Omar Ishrak, President and CEO of GE Healthcare’s Clinical Systems
business commented, “Vital Signs has an outstanding track record as a
product innovator, with a well-earned reputation for supplying quality
products. Vital Signs’ product offerings are highly complementary with
our Clinical Systems business. We believe that combining the skills and
knowledge of the two companies will create significant added value for
our customers, bringing new technologies to healthcare professionals
worldwide. Clinical Systems is a key area of growth for GE Healthcare
and expanding our skill base and product offering in this area supports
our vision of helping clinicians and nurses deliver the best possible
care to their patients.”