Smith & Nephew to acquire distribution of its wound care business in Brazil

27 November 2013 (Last Updated November 27th, 2013 18:30)

Smith & Nephew has signed an agreement with Politec Saúde to acquire the Brazilian distribution of its wound care products for an undisclosed amount.

Smith & Nephew has signed an agreement with Politec Saúde to acquire the Brazilian distribution of its wound care products for an undisclosed amount.

Under the deal, the company will acquire one quarter of Politec Saúde and its 30 employees for an undisclosed sum.

However, Politec Saúde will continue to operate its other businesses as usual, with its shareholding structure and management team unchanged.

In April, the company proposed its intention to acquire Brazilian distribution of its sports medicine, orthopaedic reconstruction and trauma products from Pró Cirurgia Especializada (PCE).

"Brazil is an exciting long-term opportunity and this is an important investment, which creates a significant platform from which we can grow."

Smith & Nephew acquired Adler Mediequip Private Limited in May, as well as the brands and assets of Sushrut Surgicals Private Limited, a mid-tier, orthopaedic trauma business in India.

In July, the company also bought certain assets related to the distribution of its orthopaedic reconstruction, trauma and sports medicine products in Turkey, currently conducted through Plato Grup.

With these acquisitions, the company further expects to expand its footprint in emerging markets, Brazil, Russia, India and China (the BRIC nations).

This series of acquisitions is part of the company's strategic plans to build a sustainable emerging markets business.

Smith & Nephew CEO Olivier Bohuon said: "Brazil is an exciting long-term opportunity and this is an important investment, which creates a significant platform from which we can grow."

Founded in 1973 and based in Sao Paulo, Politec Saúde is the sole distributor of Smith & Nephew advanced wound management products registered in Brazil.

According to GlobalData estimates, the wound care management market in Brazil was valued at $443m in 2012 and is expected to grow at a CAGR of 5.1% to reach $627m by 2019.