Olympus to acquire gastrointestinal stents manufacturer Taewoong Medical
Olympus Corporation, a Japan-based medtech company, will acquire Taewoong Medical Co., a South Korea-based gastrointestinal stents manufacturer, for up to $370 million (approximately KRW 482 billion) in cash.
Under the agreement, Olympus will pay $255.5 million at the closing of the transaction and will make milestone payment of up to $114.5 million.
With the proposed acquisition, the Japanese medtech company anticipates to strengthen its gastrointestinal endotherapy product portfolio capabilities as outlined in its medical business strategy dated December 2021.
Established in 1992, Taewoong Medical provides a range of medical devices including metallic stents designed for biliary tract, colon, esophagus, and duodenum treatments across more than 80 geographies.
Olympus Corporation to acquire gastrointestinal stents manufacturer Taewoong Medical. Photo courtesy of Dinkun Chen/Wikimedia Commons.
Gabriela Kaynor — Olympus Therapeutic Solutions Division Global Division Head said: “Olympus’ Endotherapy Division is committed to providing a full portfolio of clinically differentiated technologies aimed at treating patients who suffer from GI disease, and with the acquisition of Taewoong Medical, this further demonstrates our commitment to this critical segment of our business.
“Taewoong Medical has developed a full portfolio of GI metal stents that will immediately enhance our already robust offering of GI devices.”
Taewoong Medical’s flagship product includes Niti-S gastrointestinal stent.
Kyong-min Shin — Taewoong Medical President and CEO said: “For over three decades, Taewoong Medical has been a leading manufacturer of GI stents, renowned for its innovative technology and diverse product range.
“Our company has a robust market presence in Korea, Japan, and Europe, and exports to 86 countries worldwide.
“Moving forward together with Olympus, Taewoong Medical will focus its capabilities to provide medical professionals and patients with superior products and services through continuous investment in R&D and manufacturing technology.”
As of December 2021, the gastrointestinal stents manufacturer generated revenue of JPY 6,790 million and posted an operating income of JPY 1,347 million, according to Olympus.
The close of the transaction is expected to occur on 30 June 2023, subject to certain customary closing conditions.