GÖTENE, Sweden--(BUSINESS WIRE)--Elos has entered into an agreement to acquire US based Onyx Medical Corporation, a leading supplier of Trauma and Extremities products to the top Orthopaedics companies. Swedish based Elos is one of Europe’s leading solution partners in the development and manufacturing of high precision products and components used in medical technology, such as dental and orthopaedic implants and instruments. Operations are conducted at facilities in Sweden, Denmark and China.
The acquisition of Onyx is part of Elos’s well-defined strategy to focus entirely on the Medical Device Industry while strengthening market positions in target growth segments within Orthopaedics such as Trauma, Spine and Extremities. With a presence in Europe, Asia and the US, the combined entity will be better positioned and have an increased ability to serve the global market. Onyx Medical employs 120 people at their US facilities in Memphis, Tennessee and generated 2014 sales of USD 16 million (SEK 138 Million). The acquisition will have a direct positive impact on annualized earnings per share as well as other ratios. Following the acquisition, Elos will continue to enjoy a strong financial position with an equity/assets ratio above 40%.
The deal is expected to close in April 2015, after which Onyx will continue its existing operations as a business unit within the Elos group and serve as a platform for expansion within the United States.
“Onyx is an excellent company which Elos has been following for several years. The company has high quality products, strong customer partnerships and a market leading position with significant growth potential”, says Johannes Lind-Widestam, President and CEO of Elos, who further adds “Onyx has a talented management team, a skilled employee base, modern equipment, automated manufacturing processes, and an expansion ready facility. Onyx, operating alongside our existing operations, will serve as the US platform for long-term growth within the Orthopaedic Trauma and Spine markets and potentially for other segments where Elos holds a significant position. With this acquisition, Elos gains access to the North American Orthopaedic Trauma and Extremities markets which represent approx. 50% of the world market”.
”We could not have found a better strategic partner than Elos”, says Jodie Gilmore, CEO of Onyx. “Elos shares our vision to remain keenly focused within our target markets and core competencies. As we grow our business in support of our customer partners, we are excited by the opportunities presented by becoming part of this dynamic, global organization”.
Further financial information regarding the acquisition will be given in the first quarter interim report that will be published on April 27.
Elos is one of Europe’s leading solution partners in the development and production of precision products and components used in medical technology, such as dental and orthopaedic implants and instruments. Operations are conducted at facilities in Sweden, Denmark and China. Customers consist primarily of international medical-technology companies.
Elos Group’s turnover is approximately MSEK 400 and has about 400 employees. The Group is traded on NASDAQ Stockholm AB since 1989. The Elos B share is classified as a Health Care company on the Small Cap list.
Lidköping, April 7, 2015
Elos AB (publ)
For additional information Elos Group, visit www.elos.se The information of this press release is of the kind that Elos AB (publ) has to make public according to the Securities Market Act and/or the Financial Instruments Trading Act. The information was made public on 7 April, 2015 at 08:00 a.m. (CET).
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