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Fosun-owned laser maker homes in on acquisition targets

Sisram Medical hopes to buy chains of beauty clinics, now a key customer base. (Courtesy Sisram Medical)

HONG KONG — Medical laser manufacturer Sisram Medical is aggressively seeking overseas acquisitions as parent company Fosun Internationalresumes dealmaking after coming under pressure last year from the Chinese government over its purchasing activities.

“We have been told by top management, ‘Just tell us what you need’,” said Sisram Chief Executive Lior Dayan in an interview with the Nikkei Asian Review.
Fosun created Sisram to buy Israel’s Alma Lasers in 2013 in a $221.6 million deal. Along with a handful of other highly acquisitive private conglomerates, Fosun came under pressure last year from Beijing to restrain its purchases.

The authorities were concerned that debt-fueled buying sprees could generate financial risk. But while peers such as HNA Group and Anbang Insurance have been busily selling off overseas assets or been brought under government administration, Fosun has gone back to its shopping this year.
Recent buys include French luxury clothing Lanvin, a German factory automation systems maker, a Brazilian asset manager and a stake in an Israeli financial technology development company. Fosun’s focus, as described by Chairman Guo Guangchang, is on “health, happiness and wealth” businesses.
Sisram, which now has a market capitalization of 2.13 billion Hong Kong dollars ($271.35 million), links to the health and happiness themes. Alma’s machines are used by doctors and beauty clinics for applications such as liposuction, hair removal and skin tightening. Dayan said Fosun’s intention is to use Sisram as a holding company for “other technologies that could fit within the medtech concept and which are related to lifestyle.”
Dayan, who was with Alma before the acquisition, said he and his colleagues previously were focused on the organic development of their laser business.

One immediate target is Sisram’s Chinese distributor, which handled a fifth of its sales last year. Sisram does its own distribution in the U.S., Germany and India and will look at buying out its partners in other large markets where they are earning a good profit margin, Dayan said.

Lior Dayan

Sisram Medical CEO Lior Dayan (Photo by Takeshi Kihara)

Sisram is also looking at purchasing distribution rights for related products. Earlier this year, it formed a joint venture with European pharmaceutical company Ibsa to distribute its injectable filler, used to smooth out wrinkles or create fuller lips, in China, India and Hong Kong.

Another target is medical hardware producers, whether by direct acquisition or via other Fosun companies that would then inject the assets into Sisram. Dayan said diagnostic equipment is of particular interest, mentioning devices for urologists and gynecologists.

Sisram also intends to use M&A to get further into the clinic business itself. Under the Alma Care name, it has opened two showroom clinics in Italy and nine in China, with another opening shortly in Paris.

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