Economy: Siemens Healthineers buys US cancer specialists

Billion-dollar deal in the media interest rate sector: The former Siemens subsidiary Siemens Healthineers plans to buy in the United States. And as is often the case in families, the mother stretches the amount almost entirely.

The medical technology provider Siemens Healthineers plans to purchase billions. The target is the U.S. cancer specialist Varian Medical Systems. For this purpose, the former Siemens subsidiary plans to take 16.4 billion euros in hand, as the MDax group announced. Siemens Healthineers plans to use mixed financing from debt and equity for the purchase.

The US company reportedly generated $ 3.2 billion last year. The operating margin was 17 percent. The Board of Directors has already voted unanimously for the deal and recommends Varian shareholders to accept the offer. As usual, the authorities and shareholders still have to approve the takeover. However, it should be in dry cloths in the first half of 2021.

Full effects from 2025

Siemens Healthineers expects that the deal will have a positive effect on adjusted basic earnings per share within the first twelve months after execution. From 2025, the company expects effects on the operating result of around 300 million euros annually. The company currently employs around 50,000 people at locations in more than 70 countries.

In the fiscal year ended at the end of September, the company had sales of EUR 14.5 billion, six percent higher than in the previous year. The dominant imaging division (X-ray, computed tomography, MRI) had a final spurt, as the company announced at the time. However, the adjusted operating profit margin rose only slightly to 17.3 percent and remained below target. Tomorrow Monday, the company reports on the third quarter of the current year. In the second quarter of the year, sales increased by 3.3 percent. Profit after tax was also above the previous year's level.

Shares, loans, bonds for the Dax dream

The agreement now reached provides that Siemens Healthineers will offer Varian shareholders 177.50 per share. The business is to be financed through equity and debt. For example, more than 15 billion euros come temporarily from the parent company Siemens. About half of this sum will later be replaced by the issue of new shares. The beginning of this should already take place this year. The rest is financed through loans and bonds.

The deal should also give new impetus to the ambitions of Siemens Healthineers, as one of the largest providers of medical technology products worldwide, to move up the German stock index of the 30 largest German listed companies. "That would rather reflect our true meaning," CEO Bernd Montag told SZ in June. Siemens Healthineers has been on the stock exchange for two years and is currently on the MDax.

Siemens, the group still holds 85 percent of Healthineers, had to decide whether additional shares would be sold. "But increased visibility would help us and Germany as well," said Montag. With a capitalization of 44 billion euros, Siemens Healthineers is one of the most valuable companies in Germany. As a result of the capital increase at the subsidiary, the share for Siemens will drop to 72 percent, the Dax group said.

. (tagsToTranslate) Economy (t) Siemens (t) MDax companies (t) Acquisitions and mergers (t) Medical technology