Smith & Nephew (FTSE:SN, NYSE:SNN) is moving to a direct sales model in Brazil with the acquisition of Pró Cirurgia Especializada, its longstanding distributor in the Carioca State.
The British medical device company said the buyout is "in line with Smith & Nephew’s strategic priority to supplement its organic growth through acquisitions and to build sustainable businesses in the emerging markets," according to a press release.
"Building a substantial and sustainable business in Brazil is central to our strategy to be leaders in the emerging markets. We know PCE well, having worked together for many years, and are confident that its deep market expertise and customer relationships give us a strong platform," CEO Olivier Bohuon said in prepared remarks. "We welcome the employees of PCE to Smith & Nephew and look forward to realising the many opportunities we see in this exciting market."
Smith & Nephew said it’s been working with PCE, founded in 1957 and employing 185 workers, "for over 30 years."
The deal is expected to close during the 2nd half of the year. Specific terms of the deal were not disclosed.
