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.
Shares in EBOS (ASX:EBO) last traded at $23.14.