Mindray to Acquire Controlling Stake of Chinese Orthopedic Device Company for USD 35.5 Million

Mindray Medical International Limited (Mindray; Shenzhen, China), a global developer, manufacturer, and marketer of medical devices, has announced a definitive agreement to acquire a controlling stake of orthopedic instrument producer Wuhan Dragonbio Surgical Implant Co., Ltd (Dragonbio; Wuhan, China) for USD 35.5 million.

Dragonbio manufactures surgical orthopedic devices, specializing in trauma, spine, and joint products. The company sells its products solely in China, where Frost & Sullivan valued the orthopedics market at USD 1.1 billion in 2010, with a projected annual growth rate of 18% from 2010 to 2015.

According to Mindray, the acquisition will give Dragonbio a chance to break into the world orthopedic device market, which the company valued at USD 30 billion in 2011. The transaction will also give Mindray access to the fast-growing Chinese orthopedic market, and help potentially expand its services to additional international markets in the future.

“We are excited about this transaction and are pleased to offer more products to our customers,” said Minghe Cheng, chief strategic officer, Mindray. “The orthopedic consumable market has high barriers to entry, but this deal will give us instant access to this promising and sizable market. We expect to unlock the value of the acquired business through our strong capital position, large-scale operational experience and worldwide presence.”

The Dragonbio deal is part of an overall diversification plan for Mindray to expand its market share. The company already sells devices for medical imaging, patient monitoring, life support, and in vitro diagnostics, and hopes to expand into other fields in the competitive Chinese device market.

The acquisition deal is expected to close in July.


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