King Systems Corp, a subsidiary of Bespak PLC, is acquiring Emergent Respiratory Products through a two-step acquisition procedure, according to a recent announcement by Hans Gregory Wood, president and CEO of Emergent Respiratory Products.
King Systems invested $3 million on April 13, 2007 for a 51% equity stake in Emergent. This initial investment will be used to increase Emergent’s pre-hospital sales organization and leverage the opportunities from King Systems and Bespak’s range of proprietary airway management products. The remaining 49% of the company will be acquired by King Systems from Emergent shareholders between 2009 and 2011, upon exercise of an option by King Systems at a pre-determined multiple of Emergent’s profits, but in any event subject to a maximum deferred consideration of $35 million.
The acquisition of Emergent is complementary to King Systems’ anesthesia and airway management business. “Emergent brings another growth platform to Bespak’s portfolio of growing businesses,” said Mark Throdahl, Bespak’s chief executive. “It also expands our market reach from anesthesiology to emergency medicine not only for CPAP, but also for King Systems’ existing airway products.”