Philips to bid 3.6B euros for Respironics

Photo: Philips to bid 3.6B euros for Respironics

Royal Philips Electronics NV said Friday that it would bed some 3.6 billion euros (US$5.1) billion for Respironics Inc.

The company would offer US$66 (EUR94.99) per share for Respironics, a 24 percent premium to the company's closing price of US$53.11 (US$76.44) on Thursday.

Respironics had about US$1.2 billion in sales over the year ended Sept. 30, and was growing both sales and margins at close to 20 percent annually.

Repironics, Inc. (RESP) is a medical supply company that specializes in products that improve respiratory functions. It is based in the Pittsburgh suburb of Murrysville.

In 1976, company founder, Gerald McGinnis opened the company's first manufacturing facility for anesthesia masks near Pittsburgh, Pennsylvania.

Respironics bills itself as "the leading worldwide resource in the medical device industry". Its product mix includes devices for the diagnosis and treatment of sleep apnea including CPAP and bi-level (BiPAP) machines, oxygen concentrators for patients requiring supplemental oxygen, infant apnea monitors for infants at risk of SIDS, asthma treatment solutions and hospital ventilators.

Respironics derives most of its sales from the US but has operations world wide. Its profits have been steadily increasing, and its revenue recently surpassed the $1 billion mark for the first time this year. As a result, the company expects to increase its distribution system and to hire more employees.