Multi-speciality hospital chain Shalby Ltd said it will acquire implant assets of California-based Consensus Orthopedics for $11.45 million (Rs 83.7 crore).
Vikram Shah, chairman of Shalby, said in a stock market disclosure that the acquisition will help the Ahmedabad-based hospital chain to diversify its core hospital healthcare services business into related and high growth implant product offerings.
Shalby expects its implant sales to account for 15% of total revenues by fiscal 2022-2023. Shalby's total revenue in fiscal 2019-20 was Rs 486 crore.
The acquired assets comprise of inventory including knee systems, mobile bearing knee systems, hip systems and revision knee systems, and plant and equipment.
The assets will be acquired by Shalby Advanced Technologies Inc, a wholly owned subsidiary of Mars Medical Devices. Mars Medical in turn is a wholly-owned unit of Shalby.
Consensus Orthopedics designs and manufactures orthopaedic implants and instruments with sales predominantly in North America.
As part of the transaction, Shalby has appointed Daniel Hayes, a former CEO and founder of Consensus, as the CEO of Shalby Advanced Technologies. He will immediately re-engage with existing customers, build a new sales pipeline and selectively invest in innovative technologies and patented products.
Shalby also said it has appointed Sushobhan Dasgupta as its vice-chairman and global president. Prior to this, Dasgupta was at Johnson & Johnson Medical Asia Pacific.
Shalby, which was listed on the stock exchanges in 2017, focuses on primary and secondary medical and surgical services.
The company says it currently operates a chain of 11 multispecialty tertiary hospitals across India. It has an aggregate bed capacity of over 2,000 hospital beds.
In February 2016, Shalby had signed a joint venture with Dubai-based RAK Hospitals for joint replacement surgeries.
In 2011 and 2012, it acquired a string of small hospitals, such as Vrundavan Hospital and Research Centre, Usha Hospitals and Krishna Hospital, as per VCCEdge