Philips completes acquisition of Intermagnetics General Corporation
Thursday, November 09, 2006
Amsterdam, The Netherlands – Royal Philips Electronics (NYSE:PHG, AEX:PHI) announced today that it has completed its acquisition of Intermagnetics General Corporation (“Intermagnetics”) (NASDAQ: IMGC). Intermagnetics develops, manufactures and markets high-field superconducting magnets used in Magnetic Resonance Imaging (MRI) systems and is viewed as the technological innovator in this market. Intermagnetics also provides specialized MRI compatible patient monitoring devices and Radio Frequency (RF) coils that are predominantly supplied to hospitals and independent imaging centers.
Under the terms of the agreement, which was announced June 15, 2006, Philips acquired Intermagnetics for USD 27.50 per share or a total equity value of approximately USD1.3 billion (EUR1 billion), which was paid in cash upon completion. As a result of the transaction, Intermagnetics, which employs approximately 1150 people, will be financially consolidated with immediate effect within the Medical Systems division of Royal Philips Electronics. Intermagnetics’ headquarters in Latham, New York, will become the global headquarters of Philips’ enlarged Magnetic Resonance business.
The acquisition of Intermagnetics will strengthen Philips’ position in the key market of Magnetic Resonance Imaging. It will also allow Philips to participate in the fast growing market for RF coils, significantly rationalize its supply chain, and enhance its competitive position. As announced on June 15, 2006, Philips anticipates the transaction to be accretive to its operating margin towards the end of 2007. Philips estimates it will take purchase-accounting and related acquisition charges of approximately EUR 75 million in the fourth quarter of 2006 related to this transaction.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 126,000 employees in more than 60 countries worldwide. With sales of EUR 30.4 billion in 2005, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
- Contact Information
- Jayson Otke
- Philips Corporate Communications
- Royal Philips Electronics of the Netherlands
- Contact via E-mail
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.