PRESS RELEASE Stockholm, Sweden, August 24, 2006 Elekta's acquisition of 80 percent equity of the Chinese provider of radiation therapy equipment, Beijing Medical Equipment Institute (BMEI) and the transformation of the company into a Joint Venture (JV) is finalized, after the business license has been granted by the Beijing Administration for Industry and Commerce.
On March 31, 2006, Elekta announced the signing of a contract to acquire 80 percent equity of BMEI, contingent upon approval from the Chinese Ministry of Commerce and other closing conditions. Earlier this week, the Beijing Administration for Industry and Commerce announced that it had granted a business license to the new corporate entity.
The agreement includes a future option for Elekta to call and the seller Beijing Pharmaceutical Group Co. Ltd. to put for the transferal of the remaining 20 percent equity of the JV to Elekta.
BMEI is the largest domestic Chinese supplier of radiation therapy systems with an installed base of around 260 units, a strong R&D focus and a team of highly skilled engineers.
This strategic acquisition will considerably strengthen Elekta’s position on the fast growing Chinese market for radiation therapy solutions. BMEI brings to Elekta the ability to fully meet the needs of the Chinese and other emerging markets for affordable and lower cost radiation therapy solutions. The business combination of Elekta and BMEI will poise Elekta to become a comprehensive provider of linear accelerators across the spectrum performance specifications. Management plans include that BMEI will within two years launch new and highly cost effective radiation therapy equipment aimed for the domestic and international markets, complementing the existing Elekta portfolio.