Philips India buys Meditronics

NEW DELHI: Philips Electronics India on Friday announced the acquisition of Mumbai-based X-ray machines manufacturer Meditronics for an undisclosed amount.

"The acquisition underlines our decision to step up investment in high-growth areas while also delivering on our commitment to supply affordable healthcare solutions in emerging markets," CEO of parent company Royal Philips
Electronics Gerard Kleisterlee told reporters here.

However, he declined to give financial details like how much the company paid or what the turnover of Meditronics was in the last fiscal.

The acquired firm will largely cater to the Indian healthcare market, although Philips will also export some units to emerging and developed markets.

Philips will invest to expand sales in the Indian market and increase research and development expenditure in the country.

"We have high double-digit growth in India and as we continue to grow at this rate, we will hire more people for our operations here," Kleisterlee said.

The acquisition deal will be closed in the fourth quarter of the current fiscal, subject to certain contractual and regulatory obligations.

This is the second acquisition by the company in India in the current fiscal. It bought Alpha X-ray Technologies in September.