OMRON Healthcare announces acquisition of NS Indústria de Aparelhos Médicos
- Leader of the national market of nebulizers is the largest ever negotiated by the Japanese company -
September 9, 2014
OMRON Healthcare announces the acquisition of NS Indústria de Aparelhos Médicos, leader in the Brazilian domestic market for domestic use nebulizers. The contract of approximately R$ 200 million, signed on September 01, marks the expansion of the Japanese company in Brazil and is the first acquisition of a production line and sales outside of Japan, estimated as the largest ever negotiated by OMRON.
With the acquisition, the participation of the Brazilian Healthcare OMRON nebulizers market will reach 48%. The company expects to achieve 55% market share in three years, from a turnover of R$ 40 million in 2013 to R$ 220 million in 2017 Under the agreement, OMRON's NS will assume the factory, located in São Paulo, becoming the first plant of medical equipments company in Latin America, with the potential to become an export hub. Local production combined with nationwide sales network will help the company increase profitability and cash flow by reducing inventory.
"We needed to establish a production system in Brazil, in order to reduce the current difficult tariffs. We were looking for collaboration with Brazilian companies, and today we reached an agreement to acquire NS, as part of our growth strategy in Latin America, says Seiji Takeda, Executive Director of OMRON Healthcare in Japan. Besides developing and manufacturing its products, the differential of Brazilian company, is the network of sales and service, which makes it the leader in the Brazilian market nebulizers."
Inhalational treatment of respiratory diseases through nebulizers, is one of the main pillars of OMRON Healthcare, which also has a strong presence in the prevention of lifestyle-related diseases business.
The company was the first to launch the digital blood pressure monitor for home use, a segment that today is the worldwide leader.
The integration between the two companies will be to create a base of global development for nebulizers. "We will integrate the know-how of the two companies; on one side we have the distribution network and the NS and other services, high technology and innovation from OMRON Healthcare. As a result, we will have a different structure to expand our operations in Latin America and in the future, climb other markets," notes Wanderley Cunha, Director of Operations at OMRON Healthcare in Brazil.
The positive phase of the health sector in the country helped OMRON Healthcare to set your partner in this expansion throughout Latin America. Brazil is now the sixth largest healthcare market in the world, according to the World Health Organization. According to the executive, the stability of the Brazilian economy associated with increased purchasing power of the consumer and the search for quality products were OMRON Healthcare attractive to invest in the country and set your partner in this expansion throughout Latin America. "45 years ago in Brazil, NS built a wide distribution network and services present in 85% of the national territory. We are very pleased with the agreement because OMRON has always been our greatest reference for high-tech health care, with global presence", said Sérgio Florentino da Silva, director of NS.
Nebulizers are devices suitable for the control of respiratory diseases, which afflict millions of people in Brazil. Chronic obstructive pulmonary disease, COPD, for example, reaches five million people and is the fifth leading cause of hospitalization in adults older than 40 years, according to the Ministry of Health. Mainly caused by smoking, this disease registers 37 000 deaths per year. Another disease of high prevalence in the country is asthma. O DATASUS reports the incidence between 10% to 20% of the population that depend on the region and age group. They are registered approximately 2,500 deaths from the disease. In addition to smoking, and another factor of complications arising from respiratory diseases is pollution in big cities.
- OMRON Healthcare Co., Ltd.