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Shalby gains on acquiring implant assets from Consensus Orthopedics

17-May-21 09:24 Hrs IST

The assets were acquired by Shalby Advanced Technologies Inc, a wholly owned subsidiary of Mars Medical Devices, which is a wholly owned subsidiary of Shalby. The announcement was made on Saturday, 15 May 2021.

The acquired assets are primarily comprised of inventory and plant and equipment. Product inventory includes knee systems, mobile bearing knee systems, hip systems and revision knee systems. The manufacturing plant and equipment consists of machining & finishing (60,000 components per annum), inspection (75,000-80,000 components per annum) and cleaning, packaging & sterilization (1,50,000 components per annum). The manufacturing site is USFDA certified and has ISO certification 13485:2016. In addition, an experienced team of over 40 consensus employees will be joining Shalby as part of this transaction.

Consensus Orthopedics designs and manufactures orthopedic implants and instruments with sales predominantly in North America. Key customers include hospitals, surgeons and wholesale distributors. Consensus has a long-standing track record of innovation and completed over 1,60,000 joint replacement procedures with zero recalls in the company's history, as per the press release.

Shalby engages in hip and knee replacement surgeries in India with a 15% market share in private hospitals offering joint replacement. The strategic and financial rationale for this acquisition will enable it to procure quality implants at a competitive price for its own consumption in India, build on the existing asset platform to enhance implant sales across the US and international markets and diversify its business and revenues mix. In FY2023 implant sales is expected to account for 15% of total revenues. The transaction is expected to be earnings accretive in FY2023.

The consideration for the acquired assets was $11.45 million in cash and has been funded by a combination of internal accruals and US Dollar denominated bank borrowings.

Meanwhile, after market hours on Friday, 14 May 2021, Sushobhan Dasgupta had been appointed as an additional director (non-executive) designated as vice chairman and global president of the company from Monday, 17 May 2021.

Shalby is India's leading multi-specialty hospital. It currently operates a chain of 11 multispecialty tertiary hospitals across India with an aggregate bed capacity of over 2,000 hospital beds.