Gendex buys Philips dental unit

January 29, 1992

Gendex of Des Plaines, IL, completed its acquisition of the Philipsdental x-ray business in Europe last month, but broke off negotiationsto acquire Transworld X-ray of Charlotte, NC. The dental and medicalx-ray supplier had been interested in Transworld

Gendex of Des Plaines, IL, completed its acquisition of the Philipsdental x-ray business in Europe last month, but broke off negotiationsto acquire Transworld X-ray of Charlotte, NC. The dental and medicalx-ray supplier had been interested in Transworld as an entroeeeinto the mammography market (SCAN 12/25/91).

Transworld is still in the market for an investor and is speakingwith a large corporate prospect, said Jack Cumming, presidentof WDI Capital Markets of Hilton Head, SC. WDI serves as a financialadviser to Transworld.

Philips' sale of its dental business is in line with the largeDutch imaging vendor's previously expressed desire to concentrateon more profitable medical imaging modalities (SCAN 10/9/91).

The dental business had earned 40 million guilders ($22.4 million)in annual revenues for Philips Medical Systems, or about 1% ofthe company's total worldwide revenue. All 65 employees of thePMS Dental Group, located mainly in Germany and France, were transferredto Gendex.

Gendex, which was formed with the acquisition of GE's dentalx-ray business in 1983, is the largest U.S. dental x-ray supplier.The Philips acquisition will allow the company to expand internationallyas well.

BRIEFLY NOTED:

  • GE Medical Systems will trim its work force worldwideas part of an effort to improve its competitive position in anincreasingly rigorous global market. The world's largest medicalimaging vendor denied talk of significant layoffs at Milwaukeeheadquarters, however.

"It is very competitive out there, and this is increasing,"said a GE spokesman. "One of the fallouts will be a reductionof the work force over the next several years."

Prices of MRI systems have been declining internationally forseveral years (SCAN 1/16/91). The consensus among most vendorsat last month's RSNA exhibition is that this trend has hit theU.S. with a vengeance.

  • Atomic Products of Shirley, NY, merged with its sistercompany, Biodex, effective the first of the year. The new company,called Biodex Medical Systems, will continue to sell nuclear medicineand x-ray equipment as well as accessories. Biodex supplied physicalrehabilitation equipment.

Combining the two companies provides a more varied product lineand greater staff resources, a Biodex spokesperson said.