PALO ALTO, Calif., Dec. 26 /PRNewswire-FirstCall/ -- Varian Medical Systems, Inc., (NYSE: VAR) today announced it has completed the acquisition of Pan-Pacific Enterprises, Inc., the largest independent distributor of medical X-ray tubes in China, for the purpose of marketing, sales, and distribution of Varian X-ray imaging products in China. Varian is acquiring the privately held business for approximately $2 million in cash plus an additional amount based on achievement of specified milestones. Pan-Pacific has been an independent distributor of imaging components, including Varian X-ray tubes, in China since 1991.
"This acquisition significantly enhances the Varian sales channel for X-ray tubes and flat panel image detectors in China," said Bob Kluge, President of Varian Medical Systems' X-Ray Products business. "We intend to grow our X-Ray Products business in China and the experienced Pan-Pacific team will be instrumental in helping us achieve that objective. Our business specializes in delivering cost competitive, high performance components for X-ray imaging and they are well-suited to serve the growing market for high-quality imaging products in China."
Pan-Pacific Enterprises, which has approximately 30 employees working at facilities in Beijing and Shanghai, will operate within Varian's X-Ray Products business segment. Details of the financial transaction are not being disclosed, but Varian expects that Pan Pacific acquisition will be about neutral to earnings per diluted share in fiscal 2008.
Varian Medical Systems, Inc., of Palo Alto, California, is the world's leading manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy, and brachytherapy. The company supplies informatics software for managing comprehensive cancer clinics, radiotherapy centers and medical oncology practices. Varian is a premier supplier of tubes and digital detectors for X-ray imaging in medical, scientific, and industrial applications and also supplies X-ray imaging products for cargo screening and industrial inspection. Varian Medical Systems employs approximately 4,500 people who are located at manufacturing sites in North America, Europe, and China, and in its 56 sales and support offices around the world.
Forward Looking Statements:
Except for historical information, this news release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning customer demand and acceptance of products or technology for X-ray imaging, and the outlook for Varian's orders, sales, backlog, or earnings growth; future financial results and any statements using the terms "will," "intend," "well-suited to serve," "expects," or similar statements are forward-looking statements that involve risks and uncertainties that could cause Varian's actual results to differ materially from those anticipated. Such risks and uncertainties include the ability to integrate the operations and products of Pan-Pacific Enterprises into Varian, the ability to retain the services of key Pan-Pacific personnel; demand for Varian's X-ray imaging products; the impact of competitive products and pricing; Varian's ability to maintain or increase operating margins; Varian's ability to protect its intellectual property; the risk of operations interruptions due to events beyond Varian's control; and the other risks listed from time to time in Varian's filings with the Securities and Exchange Commission. We assume no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.
FOR INFORMATION CONTACT: Varian Medical Systems Spencer Sias (650) 424-5782
SOURCE: Varian Medical Systems, Inc.
CONTACT: Spencer Sias of Varian Medical Systems, +1-650-424-5782
Web site: http://www.varian.com/