China’s Fosun Pharma to buy majority stake in Israel’s Alma Lasers for $240 mn

Chinese healthcare company Shanghai Fosun Pharmaceutical Group and its subsidiary Pramerica-Fosun Fund yesterday said that it will acquire a majority 95.6 per cent stake in Alma Lasers, an Israel-based manufacturer of lasers used in cosmetic surgery, for $240 million.

This will be the first overseas acquisition by Fosun Pharma after its listing on the Hong Kong Stock Exchange in 2012.

Alma is a medical and cosmetic device manufacturer, including lights, laser, radio frequency and ultrasound with a comprehensive product offering and international sales network.

Alma is one of the market leaders in the Aesthetic energy-based device market, and entered the surgical energy-based device market in late 2012. It has completed initial research and development in the Home-Use energy-based device segment as well.

Alma entered the China market in 2003 and soon 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.

According to independent third-party research, Alma has a 15 per cent market share in the global high-end aesthetic energy-based device segment.

In 2012, Alma generated revenues of nearly $100 million.

"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,'' said Ziv Karni, Alma's founder and CEO.

"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, said, Qiyu Chen, chairman of Fosun Pharma.

''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,'' he added.

Shanghai-based Fosun International, the largest private-owned conglomerate in China, is the parent of Fosun Pharma.

The Hong Kong Stock Exchange listed company and run by chairman Guo Guangchang, Fosun International has investments in pharmaceuticals, property development, steel, mining, retail, services and strategic investments, and annual revenues of more than 45 billion RMB.