Category — Investors

Press release:

Handicare acquires Ligtvoet Products

Helmond - 30 June 2009 - Handicare acquires manufacturing company Ligtvoet Products, part of the Harting-Bank Group. Ligtvoet Products, also known as Lipro, develops and manufactures care and rehab mobility products for disabled people. The dealer organisation Ligtvoet will continue to be part of the Harting-Bank Group.

Ligtvoet Products, based in Helmond, the Netherlands, is a former family business which started as a bicycle manufacturer. Since 1965 Ligtvoet Products has specialized in developing and manufacturing high-quality comfort and rehab mobility products. Ligtvoet Products has a strong position in the Dutch market and export sales to Belgium and Switzerland. For now, Ligtvoet Products will continue to operate independently under the name Lipro. Handicare aims to integrate the company’s activities into the Handicare organisation by the end of the year. Handicare will take over all Ligtvoet Products’ staff.

Handicare is one of the fastest growing healthcare companies in Europe. The company offers solutions and support to increase the independence of disabled or elderly people as well as to improve the convenience of those who are caring for them.

The acquisition of Ligtvoet Products is part of Handicare’s growth ambitions. ”We will grow both organically and through acquisitions and we have a strong development internationally”, says Rens Schoenmakers, Senior Vice President Mobility of Handicare. ”With the expertise and products of Ligtvoet Products we are now able to offer a wider range of manual and power wheelchairs, and scooters. This will strengthen our position in the Netherlands as well as in other geographical markets,” says Schoenmakers.

”We are very positive about Ligtvoet Products becoming part of Handicare,” says Marco Jungschlager, CEO of Harting-Bank Group. ”The activities of Ligtvoet Products have a very good fit with Handicare. The organisation, expertise and extensive dealer network of Handicare can contribute to further development of the Lipro products. Additionally, we are very happy for our staff. Their jobs remain in the Netherlands, close to our operation in Helmond. Our Group will be able to fully focus on service and supplying solutions to the end users,” says Jungschlager.

About Handicare
The healthcare company Handicare AS, owned by Herkules Private Equity Fund, was founded in 1986 and offers solutions and support to increase the independence of disabled or elderly people as well as to improve the convenience of those who are caring for them. Handicare’s extensive range of products is designed to satisfy specific local market needs and includes high-quality mobility products, patient handling and bathroom safety products, stair lifts and car adaptations. Through its subsidiary Puls, the Handicare Group also has a leading position in Norway in the sales of capital goods and consumables to hospitals and institutions. Handicare, headquartered in Moss, Norway, has long-established operations in Sweden, Denmark, Germany, the Netherlands, United Kingdom, Belgium, Poland, USA and Canada, and distributes its own products to an additional 30 markets. The Handicare Group reached a sales revenue of 225 million Euros in 2008.

About Harting-Bank Group
Harting-Bank B.V., owned by NPM-Capital since 2006, was founded in 1836 and is a service-provider and supplier of care and rehab products for disabled people. The company focuses on the Dutch market, where it offers services on behalf of various customers to their clients. Customers include local authorities and health insurers. The Harting-Bank Group operates under various labels, including Harting-Bank and Ligtvoet. The Group has country-wide coverage with over 25 independent operations. Harting-Bank has chosen to focus on service and supplying solutions to end users and on qualitative and controlled growth. The Group reached a sales revenue of 100 million Euro in 2008.

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For more information, please contact:
Juliet de Kleijn
Communication Specialist
Handicare
T: +31 (0)492 593893
M: +31 (0)6 46308415
E: juliet.dekleijn@handicare.com

press release:

VMH HEALTH Awarded “Most Promising Life Science Technology Company” at Rice Alliance Life Science Venture Forum
HOUSTON – June 15, 2009 – VMH HEALTH was named one of the most promising Life Science companies at the 8th Annual Rice Alliance for Technology & Entrepreneurship Life Science Venture Forum in Houston last week.

Life Science companies showcased their new ventures for an audience of more than 400 attendees, including investors, venture capitalists, industry representatives, business leaders, advisors/mentors, service providers, and entrepreneurs.

Cynthia A. Doerr, M.D., partner, Essex Woodlands Health Ventures said of the presenters, “This is one of the most mature groups of healthcare-related company presentations that I have reviewed in Houston, and I intend to follow their progress closely.”
VMH Health is a spin-out company from Texas A&M Health Science Center and Scott and White Healthcare. The company has licensed patented technologies from these organizations to develop a diagnostic device and therapy for essential hypertension. The patents are based on over 25 years of research by scientist-physician Dr. Jules Puschett. The company is working with INCELL Corporation in San Antonio to manufacture the prototypes for diagnostic testing and therapeutics, and continues a collaborative effort with Texas A&M Health Science Center and Scott and White Healthcare to develop and commercialize the company’s products.
CEO, Gary Litwin, said of the recognition “we’re very pleased to have been recognized for our company’s efforts to date; we believe this news helps to validate our business mission”.

The one day event culminated in an announcement of the Most Promising Life Science Companies chosen from nearly 35 competitors and judged by the Rice Alliance Information Technology Advisory Board, based on the companies’ elevator pitch presentations. The exercise simulates meeting an investor on an elevator and having only 90 seconds to convince them to invest in your company.
In addition, five other new life science technology companies were pre-selected to present their 10 minute business plan presentation at the forum, and as one of the chosen five, were also named a Most Promising Life Science Technology Company.
Rice Alliance Director Brad Burke, announced the winners of the Most Promising Life Science Company awards at the event. “Every year the quality of companies improves. Many of the companies at this year’s event have developed prototypes, obtained proven results and are on their second round of funding. This makes them more appealing to investors, who have also expressed appreciation for the quality of the companies.”

The Forum was supported by Baker Botts, LLP, Essex Woodlands Health Ventures, Winstead Attorneys and Oracle with media sponsors Houston Business Journal and the BusinessMakers Radio Show. Elevator pitches from the competition can be heard at businessmakersradioshow.com starting June 20, 2009.

More information is available at:
vmhhealth.com and VMHHEALTH CEO Gary Litwin
glitwin@vmhhealth.com

The healthcare system in France is the envy of most developed countries of the world. France is also the worlds 5th largest country in terms of GDP.

This makes the above event one of the world’s top events from a business potential for those that have an interest in the rapidly expanding healthcare sectors concerning geriatrics, disability, homecare and institutional care - as the ageing population moves from acute to chronic care.

GerontExpo-handicap provides a venue for updating on the latest technologies, products, policies and trends as well as providing significant business opportunities for either manufacturers, distributors or service providers to significantly enhance their business by finding the right business partners in France and internationally.

As a plus HIT 2009 (Health Information Technologies) - will take place in the same venue and will be linked to GerontExpo-Handicap. HIT represents the rapidly growing French Healthcare IT industry and is expected to have over 100 participating companies - large and small.

Frank Barlin - Sibaya LifeScience! Managing Partner will be attending and can be contacted here.

While many business are slashing dividends BD continues to increase their dividend for the 36th continuous year. They also announced a stock repurchase program.

“This marks the 36th consecutive year of BD dividend increases. We continue to generate strong cash flow, allowing us to return significant dollars to our shareholders while continuing to make investments for the future,” said Edward J. Ludwig, BD Chairman, President and Chief Executive Officer. “Our strategy of increasing sustainable revenue growth through innovation, complemented by driving operating effectiveness and productivity, is working, and our shareholders continue to benefit.”

Complete story:

BD Board Declares Dividend Increase and Authorizes Additional Share Repurchases

November 25, 2008

Sunrise announced that they have divested their US and South America Guardian business. (by the way the Guardian brand was never strong in their European business).

Sunrise CEO Michael N. Cannizzaro said:

For Sunrise Medical this is an important step in our strategy of being the industry’s leading Mobility and Seating Company. We will work closely with Medline to insure a smooth and seamless transition for all of our valued customers

Medline DME Division President said:

The acquisition of the Guardian line marks a significant step forward in the growth and value-added development of our Durable Medical Equipment division,” said Dave Jacobs, president, Medline Durable Medical Equipment division. “Guardian has a long-standing reputation for excellence and innovation in the healthcare industry and we are very pleased to have the opportunity to build on that tradition. In addition to bolstering our competitive position in the marketplace, the acquisition of this highly respected brand expands the range of products, services and value we can offer our customers

My take on this is that this move represents the next stage in industry (re) focus. Sunrise, a former pure play manufacturer, has chosen to exit a lower value added business that is increasingly dominated by people that have been smart in terms of how they source product from Asia. Medline has considerable expertise in this area.

Of interest perhaps is that this was conducted under Michael N. Cannizzaro’s watch. He was hired in 2007 by Vestarcapital partners - private equity shareholder of Sunrise. At about the same time Sunrise had been split into two parts - namely their respiratory business and wheelchair and other businesses.

Vestarcapital had taken Sunrise private in 2000 and speculation is that they may be looking for an exit.

Last week I wrote about Handicare, a relatively highly differentiated European based rehab company that is rapidly reaching the revenues of Sunrise, that acquired Linido, a relatively low value patient aid business last week.

Interesting…

Handicare continues it’s aggressive acquisition strategy in Europe, now entering the bath aid segment with Linido - a company based in the Netherlands. They further continue to build on their presence in the Netherlands following it’s Movingpeople and Freelift acquisitions.

Linido generally caters to the higher end bath products segment and is a relatively small acquisition for Handicare at 11 million Euros.

More information here:

Handicare AS acquires Linido

Moss – 3 November 2008 - Handicare AS acquires Linido, one of the leading European players within bathroom safety products for elderly and handicapped. This acquisition will bring the total operating revenue in Handicare to 250 million EURO. Handicare has now 1 000 employees in 10 different countries.

Linido has a leading position within bathroom safety products in Holland and has a strong position in the European market. The company is located in the Netherlands and has sales to some 15 export markets.

Linido has a 70 year old history, and has some 50 employees and operating revenue of 11 million EURO. The Managing Director Jitske Bijlsma, will continue her position in the company.

The health care company Handicare AS, owned by Herkules Private Equity Fund , was founded in 1986 and has operations in technical aids like wheelchairs and home care products in addition to adaptation of cars for elderly and physically disabled people. Through its subsidiary Puls, the Group also has a leading position in Norway in the sales of capital goods and consumables to hospitals and institutions. Handicare has its headquarters in Moss, Norway, and has subsidiaries in Sweden, Denmark, Germany, the Netherlands, England, Belgium, USA and Canada, and distributes its own products to an additional 30 markets.

The acquisition of Linido is part of Handicare’s growth ambitions. ”We will grow both organically and through acquisitions and we have a strong development internationally”, says CEO, Per Gunnar Borhaug in Handicare. ”With the number of elderly people increasing, combined with the wish for many elderly to stay at home as long as possible, we are now able to offer a wider range of bathroom safety products in addition to other products for home care and institutions. Linido is a company which strengthens our product assortment and together with Linido we aim to improve our position in several geographical markets”, says Borhaug. “Linido is a healthy company which will add great value to the group’s business activities and will play a major role in Handicares business area for Patient Handling and Bathroom Safety Products under Handicare Executive Hardy Brännströms leadership”, says Borhaug.

”We in Linido are exited to become part of the Handicare Group, says the managing director, Jitske Bijlsma in Linido. ”Together with Handicare we can continue to develop even further and we can exploit important synergies in some markets”, she says. ”Linido has a very positive development both in operating revenue and results through the last years, and I expect this to grow even further with Handicare as the new owner”, says Bijlsma.

Linido was owned by Berk Partners, a Dutch private equity firm, together with management.

Questions regarding the acquisitions should be addressed to:

Per Gunnar Borhaug
CEO
Handicare AS
Tel: 0047 90739441

Hardy Brännström
Managing Director
Patient handling & Bathroom safety
Tel: 0046 703840022

Jitske Bijlsma
Handicare Managing Director
Linido B.V.
Tel: 0031 153695440

European home healthcare companies have been very aggressive and ahead of the outsourcing curve in terms of Asian sourcing. This has been born, not only as a result of optimizing their bottom lines, but out of necessity as European government pressures on reimbursement (especially in Germany) have increased dramatically.

Here is an example of the problem - and this just scratches the surface.

It is no secret that manufacturing companies as well as pure distribution companies have been competing for the volume of hundreds of thousands or perhaps millions of wheelchairs, rollator, walker or other patient aid products. Price competition has been fierce and margins, after shipping are often less than 1O%.

It is also true that products sourced in Asia are commonly quoted in US Dollars. European customers have benefited from a rising Euro over the past three years and have become complacent as to currency risk as the favorable exchange bubble continue to grow.

Three months ago 1 Euro would have bought you 1.55 US Dollars. Today 1 Euro will buy you 1.29 US Dollars. A drop of round about 20%. Check the chart.

Here is my take on this:

The Chinese are not going to be able to decrease their costs meaningfully.

The Governments are not going to raise their reimbursement prices.

The Manufacturers are not going to sell at a loss.

The Dealers are going to take a haircut.

Manufacturers or Dealers that have signed up for a low competitive bid in Germany are going to have to visit their bank for a loan.

The Banks don’t have any money to loan.