Shalby, India’s leading multi-specialty hospital, entered into a definitive agreement to acquire certain assets from Consensus Orthopedics for USD $11.45 million in cash. The assets were acquired by Shalby Advanced Technologies, a wholly-owned subsidiary of
Mars Medical Devices, which in turn is a wholly-owned subsidiary of Shalby.
The acquired assets primarily comprise inventory, 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, inspection and cleaning, packaging & sterilization.
A team of over 40 Consensus employees will be joining Shalby as part of this transaction.
The transaction allows Shalby to procure quality implants at a competitive price for its own consumption in India, build on the existing asset platform to enhance implant sales across the U.S. and international markets and diversify Shalby’s business and revenues mix. In FY2023, implant sales are expected to account for 15% of its total revenues.
The transaction is expected to be earnings accretive in FY2023.
Shalby's total revenue in FY2019-20 was Rs 486 crore (~$66.3 million); 15% of that amount equals $9.9 million.
Daniel Hayes, a former CEO and founder of Consensus, has been appointed Chief Executive Officer of Shalby Advanced Technologies.