Smith & Nephew (FTSE:SN, NYSE:SNN) said it acquired the Brazilian distribution of its wound care products from Politec Saúde for an undisclosed amount.
The move is part of the British medical products conglomerate’s move to expand its footprint in the BRIC nations – Brazil, Russia, India and China.
In May Smith & Nephew said it acquired Indian orthopedic trauma device maker Adler Mediequip and its Sushrut Surgicals brand. Along with the buyout of longtime Brazilian distribution partner Pró Cirurgia Especializada that same month, the acquisition spend was about $70 million. Smith & Nephew also acquired the distribution of its orthopaedic reconstruction, trauma and sports medicine products in Turkey from Plato Grup in July for an undisclosed amount.
"Through these transactions, together with today’s further acquisition in Brazil, Smith & Nephew is delivering on its strategic priority to build a sustainable emerging markets business," according to a press release.
"Being closer to the customer is at the heart of our emerging markets strategy. Brazil is an exciting long-term opportunity and this is an important investment which creates a significant platform from which we can grow," CEO Olivier Bohuon added in prepared remarks.
Politec Saúde, the exclusive distributor of Smith & Nephew’s Advanced Wound Management products in Brazil, derived about ¼ of its overall revenues from AWM sales, Smith & Nephew said. Some 30 Politec employees will move over to Smith & Nephew once the deal closes but the distributor’s operations will be otherwise unchanged, according to the release.
