Healthcare Acquisition Europe – Handicare – Movingpeople

Handicare (Norway) acquires Movingpeople (the Netherlands)

Here is a quote from the Handicare press release:

�This acquisition benefits both companies, and also our respective customers,� says Per Gunnar Borhaug, CEO of Handicare. �Movingpeople.net is a healthy company which will add great value to the group�s business activities. This extension is consistent with Handicare�s strategy of further strengthening our international position through organic growth and acquisitions.�

The full release is here

Heres what I think:

This looks like a pretty exciting acquisition and follows Handicare’s other recent acquisition in Denmark.

This creates one of the largest healthcare companies in this category in Europe (140 million Euro). The product ranges of both companies are predominantly in higher value added products (without many overlaps) . This also positions Handicare to participate in the more lucrative ( read higher reimbursement or privately funded) European countries. Of course the increased revenues will benefit both companies when negotiating new supply agreements especially in the powered product areas. In addition Movingpeople has a great young management team.

As with most acquisitions of this type executing the cross selling activities and product rationalization / alignment quickly and effectively will be key.

If the longer term strategy were to expand further into Europe there are companies that are emerging in the more southern countries that may well be future acquisition / merger partners.