Respironics Buyer Philips Looking To Swallow More
May 23rd, 2008Royal Philips Electronics NV, the company that bought Respironics for $5.1 billion a few months ago, is looking for even more health care companies to buy and add to its multi-faceted healthcare conglomerate. According to Forbes, earlier this month they bought Dixtal Biomedica e Technologia, a Brazilian firm, for an undisclosed sum, and they haven’t finished swallowing other companies whole.
The acquisition of Respironics for such a large sum shows that Philips is dead serious and can afford most of the medium firms out there. Already owning Respironics means Philips probably doesn’t need another CPAP machine company, though if their Respironics unit is threatened by the likes of ProBasics, Resmed, Puritan Bennet, or AEIOMed, perhaps with a new type of CPAP machine or an innovative CPAP mask, Philips may have to buy them to protect its investment.