Israeli ophthalmic diagnostic equipment maker Visionix (XETRA:VSX) has acquired French ophthalmic maker Luneau for $4.3 million.
"We work in the same business. Both companies develop ophthalmic products," says Visionix VP & CFO Ran Sasson. "Luneau is very strong in France, with $14 million in sales a year, including 75% to the French market. We had $4.1 million in sales in 2002 and about $1 million in the first quarter of 2003. 40% of our sales are in the US, 40% in Europe, and the rest in Asia."
"Globes": Do you make equivalent products?
Sasson: "Our main product has $2.5 million in annual sales. Luneau has an equivalent product that has $1.1 million in annual sales. But the products are designed for different market segments, and we'll position them differently."
Did you acquire a company larger than yourselves?
"We had an opportunity, and we took it. We've had good relations with Luneau for years. We have a presence in the French market. Our entrepreneur is French. Luneau's owner wanted to sell because he is elderly and didn’t have an heir. It was simply an opportunity for us."
The acquisition will be in cash, financed from Visionix's own resources. "We have $8 million in cash reserves, and we'll have almost $4 million after the acquisition. Luneau has $500,000 in cash."
How much is Luneau losing?
"Luneau lost $800,000 last year, but it will soon reach profitability. The two companies will break even in 2005."
How much is Visionix losing?
"We lost $360,000 in the first quarter of 2003, but we're close to making a profit. Our operations will be profitable by the end of this year, or early next year at the outside."
Will the two companies continue as separate entities, or will you merge?
"We'll stay two independent entities. Luneau has a large distribution network in France. We'll keep that intact, and use it to leverage our sales."
Published by Globes [online] - www.globes.co.il - on August 3, 2003