aap Implantate AG Enters Joint Venture for its Reconstructive Implant Business in Greater Asian Market
aap Implantate AG / aap Implantate AG Enters Joint Venture for its Reconstructive Implant Business in Greater Asian Market . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.
aap Implantate AG (XETRA: AAQ.DE) and a British Virgin Island-based Private Equity Company ("PE Company") announced today that they have entered a joint venture for aap's reconstructive implant business in the greater Asian market. Under the terms of the agreement, the PE Company will acquire 67% of the shares of aaps reconstructive implant subsidiary, aap Joints GmbH (aap Joints), for a consideration of EUR 3 million in cash, subject to adjustments for working capital. The notary authorization of all agreements is scheduled for July 3rd.
aap Joints focuses on reconstructive implants (hips, knees, shoulder) and related products, including the bone cement C~ment®. In 2012 aap Joints recorded sales of EUR 2.2 million. This joint venture will expand sales activity into the greater Asian market, leveraging aap's product development and manufacturing expertise along with the local market commercial expertise of selected Asian medtech entrepreneurs. aap Joints plans to immediately initiate registration activities in China, and based on current expectations, aap anticipates the joint venture will achieve its first sales in the high growth Indian and Chinese markets in the second half of 2013 and late 2014, respectively. In addition, the joint venture will benefit from plans to expand the product portfolio with additional Biomaterials. Outside of the greater Asian market, aap Joints will continue to serve its existing customer base in Europe and the Middle East.
As a result of the acquisition of shares as part of the joint venture agreements, we expect a slightly positive EBITDA impact on aap Implantate AG's financial results. It is expected to have a positive impact on the Company's balance sheet given the anticipated decrease in inventory of approximately EUR 2 million, lower intangible assets (capitalized development cost) of approximately EUR 1.5 million and a strong improvement of the net working capital quote.
Biense Visser, CEO of aap Implantate AG, said, "This joint venture represents another milestone in the ongoing implementation of our strategy to focus on the key elements of our business, including trauma and biomaterials. We have been evaluating various alternatives for our Recon portfolio and this joint venture offers an attractive business opportunity in the strategic greater Asian market. aap Implantate AG will benefit directly from increased supplies to aap Joints GmbH and indirectly from the value created by this joint venture."
Isaac Bresnick, Managing Director of aap Joints GmbH, said, "The joint venture allows us to build up a market share in the growing Asian medtech market with recon products and cements. We will now be able to offer customers in Asia high quality orthopaedic recon products with an excellent reputation, given that they are made in Germany and have received U.S. and/or European regulatory approval. The joint venture may also allow us to increase our value proposition by outsourcing parts of the manufacturing to recognized Asian suppliers. Together with the aap management we will select other products from aap's portfolio for sales in China and other Asian markets."
aap Implantate AG will update its guidance for the third quarter and the full year 2013 to include the impact of the joint venture in conjunction with the publication of the report for the second quarter on August 14, 2013.
This release contains forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.
aap Implantate AG (ISIN DE0005066609)
- Prime Standard/Regulated Market - All German stock markets -
aap is a global medical device company headquartered in Berlin, Germany that develops, manufactures and markets innovative biomaterials and implants that are used in orthopedic procedures. The Company's products, which include a full line of plating systems, cannulated screws and bone cement products, are primarily used in the orthopedic specialty areas of trauma and spine repair. The Company's products are sold through its direct sales force, distribution partners and license agreements with OEM partners. aap's stock is listed in the Prime Standard segment of the Frankfurt Stock Exchange. For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.
For inquiries please contact:
aap Implantate AG, Marc Heydrich, Investor Relations, Lorenzweg 5, 12099 Berlin, Germany
Tel.: +49 30 7501 9-134, fax: +49 30 7501 9-290, firstname.lastname@example.org
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Source: aap Implantate AG via Thomson Reuters ONE
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aap Implantate AG
Lorenzweg 5 Berlin Germany
WKN: 506660;ISIN: DE0005066609;
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