Shalby Limited (Shalby), India’s leading multi-specialty hospital, announced that it has entered into a definitive agreement to acquire certain assets from Consensus Orthopedics (Consensus) a company headquartered in El Dorado Hills, Sacramento, California for a cash consideration of USD 11.45 million.
The assets were acquired by Shalby Advanced Technologies Inc, a wholly owned subsidiary of Mars Medical Devices, which in turn is a wholly owned subsidiary of Shalby.
Consensus designs and manufactures orthopedic implants and instruments with sales predominantly in North America. Key customers include hospitals, surgeons and wholesale distributors. Consensus has a long-standing track record of innovation and completed over 160,000 joint replacement procedures with zero recalls in the company’s history.
The acquired assets are primarily comprised of inventory and plant and equipment. Product inventory includes knee systems, mobile bearing knee systems, hip systems and revision knee systems. The manufacturing plant and equipment consists of machining & finishing (60,000 components per annum), inspection (75,000-80,000 components per annum) and cleaning, packaging & sterilization (150,000 components per annum). The manufacturing site is USFDA certified and has ISO certification 13485:2016. In addition, an experienced team of over 40 Consensus employees will be joining Shalby as part of this transaction.
Shalby has appointed Daniel Hayes, a former CEO and founder of Consensus, as the Chief Executive Officer of Shalby Advanced Technologies. As the founder and CEO of several orthopedic companies, he has previously successfully led the acquisition and turnaround of three orthopedic implant companies. As the CEO of Shalby Advanced Technologies, he will start to implement his 100 day plan centered on re-engaging with existing customers, developing a new sales pipeline and selectively investing in innovative technologies and patented products.
Given his previous role as the founder and CEO of Hayes Medical (now called Consensus Orthopedics), Hayes will be instrumental in driving the strategy and financial performance of Shalby Advanced Technologies over the coming years, the statement said.
The transaction has been completed with no regulatory or other approvals required. The consideration for the acquired assets was USD 11.45 million in cash and has been funded by a combination of internal accruals and US Dollar denominated bank borrowings.
Shalby retained Zukin Partners (US) and Deloitte (India) as a transaction advisor and appointed Stradling Yocca Carlson & Rauth (US) as the legal advisor.
Shalby has also appointed Sushobhan Dasgupta as Vice Chairman and Global President of Shalby Limited. Previously Dasgupta was Vice President-Orthopedics, DePuy Synthes at Johnson & Johnson Medical Asia Pacific.
With over 30 years of experience in the field of healthcare, he has worked in several developed and emerging markets across several businesses and disciplines in the medical technology, orthopedics and consumer health sectors. As Vice Chairman and Global President of Shalby, he will be responsible for managing the hospital business and all business heads will be reporting directly to him. In addition, Mr. Dasgupta will be working closely with Mr. Hayes, to expand Shalby’s implant business both in India and internationally.
Commenting on the transaction, 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. I very much welcome Mr. Sushobhan Dasgupta and Mr. Daniel Hayes to the Shalby group and I personally look forward to working closely with them to drive both Shalby and Shalby Advanced Technologies to the next level.”
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.