EBOS Group enters medical devices sector via the acquisition of LMT and National Surgical
EBOS Group Limited (EBOS) is pleased to announce its entry into the Australian and New Zealand medical device sector following the strategic acquisition of the LMT (“Life. Movement. Technology.”) and National Surgical businesses.
The acquisition provides EBOS with an initial entry point and strong platform for growth into the A$8 billion Australian and New Zealand medical devices sector.
LMT and National Surgical were co-founded by Jon Mills and Kerry Lawford and over the last 24 years have built a strong presence in Australia and New Zealand providing products and services to the Orthopaedic, Spine, Neuro, ENT, Plastics and most recently the Sports Medicine community. The businesses have developed a niche in bringing innovative specialty products, produced by original equipment manufacturers (OEM’s), into Australia, New Zealand and the Pacific region.
EBOS Chief Executive Officer John Cullity said, “The acquisition represents an important development in the Group’s growth trajectory as it is the first step in building another significant platform to our Healthcare portfolio.
“Medical device distribution presents a natural adjacency to our existing capability and offers strong economic fundamentals and promising organic growth rates,” Mr Cullity said.
“Our strategy is to target specific therapeutic areas focused on ‘personalised healthcare’ which means quicker and more effective screening, diagnosis and treatment leading to a better healthcare service for our communities.
“Consistent with our proven strategy we will continue to grow our presence through further bolt-on acquisitions. As a truly independent partner we can provide long term growth opportunities to both existing and new OEM’s as we bring experienced management, capital resources and strong hospital relationships in the Australia and Zealand market,” Mr Cullity added.
Co-founders Jon Mills and Kerry Lawford said they were delighted that the respective businesses they founded have been purchased by EBOS Group, a healthcare company with a proven track record of adding value to their new acquisitions.
“We look forward to working with a bigger team, with more capital and the ability to leverage EBOS’s strong relationships with healthcare networks throughout Australia and New Zealand to provide existing and new customers a wider scope of service,” they said.
The acquisition price was A$34 million and the business generates revenue of approximately A$40 million. The acquisition is not expected to have a material effect on FY20 earnings. The acquisition is expected to meet the Group’s return on capital employed hurdle of 15% within 2 years.
