On April 10, Steady Medical announced that the company had signed a definitive agreement to acquire a 55% stake in Zhejiang Longtai Medical Technology Co., Ltd. ("Longtai Medical") for 728 million yuan.
Robust Medical believes that the acquisition is in line with the company's strategy to become an industry leader in the advanced wound care market. Robust and Longtai will benefit from economies of scale and synergies in overseas and domestic customer bases, market channels, products, R&D and manufacturing.
Longtai Medical is committed to developing, producing and selling advanced wound care products and has been the market leader in China's advanced wound care industry. In 2021, the total sales revenue of Longtai Medical exceeded 350 million yuan, of which the revenue of high-end wound dressings and ostomy products exceeded 280 million yuan.
Longtai Medical was established 10 years ago, while Steady Medical has a history of 31 years. Through post-acquisition integration and synergies, the two companies, as a whole, are expected to gain greater market share and achieve higher revenue growth.
In terms of domestic sales channels, Longtai Medical provides services to more than 600 hospitals, while Steady Medical's services cover more than 4,000 hospitals in China. The two companies will work closely together to provide a full range of one-stop services and aim to be the preferred service provider for doctors, nurses and patients. In addition, Robust Medical will cooperate with Longtai Medical to develop home medical solutions for patients and consumers.
Global advanced wound care is an important and growing segment, while domestic industry concentration is expected to increase. According to BIS Research Report, the global advanced wound care market reached USD 5.85 billion in 2020 and is expected to reach USD 7.23 billion in 2027.
Robust Medical and Longtai Medical are leaders in the advanced wound dressing market in China, and this acquisition will help promote the complementary strengths of their global medical businesses and further enhance Robust Medical's position as a leader in advanced wound care, with the core value of leveraging Technology improves clinical outcomes and the economics of healthcare, and together provides more comprehensive solutions that improve the lives of patients worldwide.