Philips Medical Systems parent Royal Philips Electronics has signed a definitive agreement to sell Philips' Healthcare Products Group (HCP) to acquisition firm Platinum Equity Holdings of Los Angeles. Philips HCP, formerly Marconi Health Care Products, is a major distributor of radiology-related products and supplies.
The decision to divest Cleveland-based HCP was not unexpected, as Philips indicated its intent to sell off the unit after acquiring Marconi Medical Systems in October 2001. HCP is projecting 2002 revenue of over $600 million, and has over 900 employees and over 20,000 customers in the U.S, according to the companies.
A spokesman for Platinum Equity told AuntMinnie.com that it's premature to discuss any plans it has for HCP, as the deal has not been completed. The firms declined to release details of the deal, which is expected to close by the end of the year. The deal is subject to closing conditions, including regulatory approval.
Platinum Equity specializes in purchasing and operating technology vendors, and owns 21 companies that generate annual revenue in aggregate of over $4 billion, according to the company. The firm already owns two healthcare vendors, although none in the radiology space.
One of those companies is Synertech Health Systems Solutions, an application service provider that offers administrative outsourcing, processing, hosting, and consulting services. Another Platinum Equity company, Amisys, is a healthcare information technology firm that markets a healthcare payor information management product and software tools for compliance with the Health Insurance Portability and Accountability Act.
By AuntMinnie.com staff writersSeptember 11, 2002
Related Reading
Philips HCP debuts e-Logistics, February 27, 2002
Philips HCP expands HPG deal, February 1, 2002
Philips unifies brands, lays claim to radiology’s number two spot, November 12, 2001
Marconi HCP sells its first Swissray ddR, August 29, 2001
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