Smiths acquires Chinese medical instruments firm

SMITHS Group, the global technology company, today announces the acquisition of Zhejiang Zheda Medical Instrument Co. Ltd ("ZDMI"), the Hangzhou-based medical instruments manufacturer. The acquisition will expand Smiths presence in the vast and rapidly growing Chinese healthcare market.

ZDMI manufactures syringe pumps and enteral feeding devices primarily for the Chinese healthcare market which is growing as the population ages and increases in prosperity.

Srini Seshadri, President of Smiths Medical, said: "This acquisition effectively expands our access to the rapidly expanding market in China and provides Smiths Medical with excellent opportunities to drive growth at a global level by leveraging ZDMI's strong product lines and cost base.

"ZDMI's product range complements our existing portfolio of infusion devices and will benefit from Smiths Medical's global sales network, providing further opportunities for growth."

Vermilion acted as lead adviser to Smiths Group plc.

18 November 2008

Smiths buys Chinese microwave electronics firm

SMITHS Group, the global technology company, today announces the purchase of Allrizon Tongguang, a Shanghai-based communications equipment firm, from private owners for an undisclosed cash sum.

Allrizon complements and extends Smiths Interconnect's microwave business. It focuses on the design and manufacture of radio frequency (RF) filters and related products for the wireless telecommunications infrastructure market. In calendar year 2007, Allrizon posted sales of £5.3 million.

Paul Cox, Group Managing Director of Smiths Specialty Engineering, said: "This acquisition effectively adds to Smiths Interconnect's footprint in China where some 70% of the world's wireless telecommunications infrastructure equipment is made.

"Allrizon offers first-class technology, providing new channels to market and enhanced relationships with the rapidly growing Chinese telecoms manufacturers. Combined with Interconnect's existing activity in Shanghai, Allrizon will expand our manufacturing base and create a microwave centre of excellence aimed at securing business with both indigenous and international manufacturers that operate within China."

Within China, Allrizon is a technology leader in its chosen field with a 40-strong engineering team among its 282 employees.

The global wireless communications market for RF filters and systems is estimated to be £700 million and is forecast to grow by around 7% annually to 2011. Growth rates are even higher in China itself.

Vermilion acted as financial advisor to Smiths Group plc.

13 May 2008

Diageo buys into baijiu sector

A Chinese holding company has sold its 43 per cent share of the parent firm of Chengdu Swellfun Co Ltd to Diageo, marking the first possible foreign entry into China's premium spirits industry.

Chengdu Yingsheng Investment Holding Corp announced it would sell its 43 per cent stake in Chengdu Quanxing Group to the world's largest alcohol beverage manufacturer, Diageo Highlands Holding BV. Quanxing is the parent company of Swellfun, a maker of traditional Chinese liquor, or baijiu.

Under the agreement, Diageo will help develop the international market for Swellfun.

"Diageo will help to develop the international market for the Swellfun brand, and it will also provide technical and other support to Quanxing," said Michael Lu, a spokesman for Diageo China.

Baijiu, literally meaning "white liquor," is the most popular spirit in China. The total export value of Swellfun was 2.7 million yuan (US$344,000) in the first half of 2006. A report by the company showed it has achieved an increase as high as 180 per cent year-on-year.

London-headquartered Diageo holds over 30 per cent of the world's spirits market with over 10 brands, including Baileys, Johnnie Walker and Guinness.

"Diageo believes that it has found the best possible partner through which to deepen its commitment to the Chinese market," spokesman Lu said in a statement.

The Economic Observer newspaper earlier quoted an expert saying that the deal might bring a major change to the baijiu sector.

Vermilion acted as financial advisor to Diageo.

27 January 2007