Engineering major Larsen & Toubro (L&T) has agreed to sell its Mysore-based medical equipment business to privately held Skanray Healthcare Pvt Ltd for an undisclosed amount, according to a BSE filing.
L&T established its medical equipment business in 1987 to expand into emerging areas with products like patient monitors, ECG machines, syringe pumps, anaesthesia delivery systems, ventilators, defibrillators, cardiac resuscitation systems, ultrasound and colour Doppler imaging, X-ray and C-Arm image intensifiers, hospital turnkey projects, telemedicine solutions and speciality ambulances.
Medical equipment & services is part of L&T’s electrical & automation (EA) unit and has been a stand-alone strategic business unit.
L&T scrip closed at Rs 1,578.05 a share on the BSE, down 1.55 per cent in a weak Mumbai market on Friday.
The deal comes three months after L&T signed an agreement to sell its plastics machinery business, housed under the subsidiary L&T Plastics Machinery Ltd, to Toshiba Machine Co. Ltd.
Skanray Healthcare is a fully owned subsidiary of Skanray Technologies Pvt Ltd, a Mysore-based medical equipment manufacturing company set up in 2007. The firm specialises in high frequency X-Ray imaging systems, critical care devices, and primary healthcare & telemedicine-compatible devices. It has recently raised an undisclosed amount from pharma company Strides Arcolab’s promoter Arun Kumar.
In other M&A deals in the medical equipment space, Trivitron Healthcare acquired minority stake in Kiran Medical Systems while Opto Circuits acquired US-based Cardiac Science for $54.7 million.
Moreover, there had been a slew of PE/VC deals in the sector with CX Partners buying stake in Sutures India for $37 million, Fidelity leading a $75 million investment round in Trivitron, India Innovation Fund and IAN co-investing in medical devices startup Consure Medical, IDG Ventures and Accel investing $5 million in Forus Health and Norwest leading a $7.2 million round in Perfint Healthcare.
(Edited by Sanghamitra Mandal)