Medical marketer and wholesaler EBOS (ASX:EBO) has entered into the medical device market with the $34 million acquisition of LMT and National Surgical businesses.
The acquisition provides EBOS with an initial entry point and strong platform for growth into the $8 billion Australian and New Zealand medical devices sector.
The business generates revenue of approximately A$40 million. The acquisition is not expected to have a material effect on FY20 earnings and the purchase is expected to meet the Group’s return on capital employed hurdle of 15 per cent within 2 years.
EBOS says the acquisition represents an important development in the Group’s growth trajectory as it is the first step in building another significant platform to its Healthcare portfolio.
