Fosun Pharma acquires aesthetic laser company Alma Lasers for $240M

Hong Kong--Healthcare company Shanghai Fosun Pharma Group (Fosun Pharma) and its subsidiaries will invest up to $240 million dollars jointly with Pramerica-Fosun China Opportunity Fund to acquire up to 95.6% share of aesthetic laser company Alma Lasers (Caesarea, Israel). Through this transaction, Fosun Pharma says it will achieve an important milestone in its strategy of growing its global business. After its IPO on the H share market in Hong Kong in 2012 and gaining access to the international capital markets, Fosun Pharma will now complete its first international healthcare acquisition project. The medical devices business of Fosun Pharma will continue its strategy of moving from product distribution to R&D and manufacturing, and gain a leading position in the international aesthetic medical device market segment.

Alma Lasers is a global medical and cosmetic energy based (including lights, laser, radio frequency and ultrasound) device manufacturer, with a comprehensive product offering and international sales network. Alma Lasers has developed world-class R & D capabilities in the medical and cosmetic energy-based device (http://www.laserfocusworld.com/articles/2012/04/laser-treatment-of-burn-scars-helps-military-and-civilian-patients.html) manufacturing field and established a global leading brand in the market segment. Alma Lasers has an outstanding track record of maintaining sustainable and rapid growth. In the past decade, Alma Lasers has delivered strong performance. In 2012, Alma Lasers recorded nearly $100 million dollars total revenue. According to independent third-party research, Alma has an overall 15% market share in the global high-end aesthetic energy-based device segment.

The medical and cosmetic energy-based device industry is composed of 3 sub-segments: aesthetic, surgical, and home-use energy based devices. Alma Laser's CEO said, "The Alma Lasers team is delighted to be joining Fosun. Fosun's successful international M&A experience and strategic focus on healthcare and aesthetic and medical devices provide Alma Lasers with an exceptional platform to grow our business in Asia and globally. We look forward to working with the management team of Fosun and benefiting from their expertise."

The global medical and cosmetic energy-based device sector (http://www.laserfocusworld.com/articles/print/volume-49/issue-01/features/laser-marketplace-2013-laser-markets-rise-above-global-headwinds.html) exhibits strong growth potential. Alma Lasers entered the China market in 2003 and rapidly became the market leader in the high-end market segment for energy-based aesthetic medical device. At present, China is one of the largest markets in the world for Alma.

Qiyu Chen, chairman of Fosun Pharma, said, "We are very optimistic about the growth prospects of the global medical and cosmetic energy-based device market, especially in the Brazil, Russia, India and China, as well as other emerging markets. Fosun Pharma will continue to support Alma's global expansion. Fosun Pharma will build on Alma's strength and be committed to developing a high-end medical device research, manufacturing platform. The acquisition demonstrates Fosun Pharma’s strategy in pursuit of global expansion.”

Established in 1999, Alma Lasers has global headquarters in Israel and a North American sales and supporting center in Chicago, IL. The founder of Alma, Ziv Karni, currently serves as CEO of the company. He, as the holder of tens of patents in the medical laser technology sector, has more than 20 years' experience in the research and development of medical lasers. By the end of 2012, Karni's R&D team of around 40 people had developed and registered 74 patents; another 23 applications are being processed.

SOURCE: Fosun Pharma; http://www.fosun.com/En.php/News/View/ID/352