Shalby acquires implant assets from US-based Consensus Orthopedics
Shalby Limited, an Indian multi-specialty hospital chain, has acquired certain implant assets from Consensus Orthopedics, a California-based medical equipment manufacturer, for $11.45 million in cash.
The assets were purchased by Shalby Advanced Technologies, a fully-owned subsidiary of Mars Medical Devices, which in turn is a 100% subsidiary of Shalby.
Consensus Orthopedics is engaged in designing and manufacturing orthopedic implants and instruments, which are predominantly sold in North America to hospitals, wholesale distributors, and surgeons.
The acquired assets are comprised mainly of inventory and plant and equipment. Included in the product inventory are knee systems, hip systems, mobile bearing knee systems, and revision knee systems.
Shalby acquires implant assets from US-based Consensus Orthopedics. Photo courtesy of Andersonvr from Pixabay.
The manufacturing plant and equipment includes machining and finishing capabilities of 60,000 components per annum, inspection capabilities of 75,000-80,000 components per annum, and cleaning, packaging, and sterilization of 150,000 components per annum.
The manufacturing site being acquired from Consensus Orthopedics is certified by the US Food and Drug Administration and has ISO certification 13485:2016.
An experienced team of more than 40 employees of Consensus Orthopedics will be joining Shalby as part of the deal.
Shalby said that the acquisition will help it source quality implants at a competitive price for the company’s own consumption in India, consolidate its existing asset platform to boost implant sales across the US and global markets, and also diversify its business and revenues mix.
Dr. Vikram Shah – Chairman of Shalby said: “This acquisition is a strategic milestone in the history of Shalby and will enable us to diversify our core hospital healthcare services business into related and high growth implant product offerings. The synergies between the businesses are compelling and will return immediate benefits of sourcing quality implants into India across our hospital group.
“This corporate development is fully in line with our stated strategy to grow our orthopedic business. As we continue to grow Shalby across India, we will work closely with our doctor network to better appreciate the benefits of our implants in terms of higher operational efficiency and profitability.”