Ebos buys biomedical stake

By Phil Boeyen, ShareChat Business News Editor

Tuesday 4th December 2001

Medical distributor Ebos Group (NZSE: EBO) has taken a controlling interest in biomedical products manufacturer Biomed.

Ebos describes Biomed as a profitable niche business with annualised sales in the $5-6 million range and valuable brands registered in New Zealand and Australia. It also has long term licensing contracts for B.Braun pharmaceuticals in New Zealand.

"The Biomed business consists of clinical nutritionals - using B. Braun ingredients, pain management products, plasma volume expanders, medicine solutions mixing and packing and controlled drug preparation," says Ebos MD Mark Walker.

"Markets are public and private hospitals in New Zealand with a developing business in Australia and USA."

Ebos says its controlling interest in the business comes via its 74%-owned subsidiary, Health Support, which has agreed to purchase 51% of Biomed from the Crown. B. Braun Medical USA holds the other 49% of the joint venture.

"The sale has been transacted for cash with Biomed Investments, which is jointly owned by Auckland Healthcare and Waitemata Health," Ebos says.

Mr Walker says the move completes the first of the transactions that the company advised at its annual meeting in October.

"It is consistent with our growth strategy of acquiring interests in businesses that already represent excellent brands and also have the potential to develop and manufacture proprietary brands."

The sale price has not been disclosed but Ebos says the transaction will not require shareholder consent.

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