HAIFA, Israel, Sept. 11 /PRNewswire/ -- Elscint Ltd. (NYSE: ELT), a
subsidiary of Elbit Medical Imaging Ltd. (Nasdaq: EMITF), has agreed in
principle to sell its nuclear medicine and magnetic resonance (MR) medical
imaging businesses to GE Medical Systems for the gross amount of $100 million,
subject to certain adjustments and before taxes, restructuring and other
reorganizational costs. Presently the Company cannot estimate the net effect
resulting from this transaction.
"We are extremely proud of the achievements of Elscint's nuclear and
magnetic resonance medical imaging businesses, and the people who created
their success," said Elscint Chairman and Chief Executive Officer, Mr.
Emmanuel Gill.
"However, in the face of ever increasing global competition, we believe
that this transaction is a complementary strategic match with General
Electric's line of products, and its worldwide distribution organization.
"Essentially, the transaction provides a broader range of solutions for
our customers and creates a greater potential for future development for the
nuclear and magnetic resonance medical imaging employees and management."
Jeffrey R. Immelt, GE Medical Systems' President and Chief Executive
Officer, added, "By adding Elscint's nuclear imaging and magnetic resonance
capabilities, this acquisition will enable GE Medical Systems to better serve
the world's medical caregivers and their patients. We have developed an
appreciation for the capabilities of the Elscint organization through our
ELGEMS venture, and we will be delighted to welcome Elscint's talented people
to the GE family."
The transaction calls for GE Medical Systems to acquire Elscint's sales
and service capabilities for both the nuclear medicine and magnetic resonance
imaging businesses and certain design and manufacturing capabilities of the
magnetic resonance imaging business. The parties plan to continue their joint
venture, ELGEMS, which was formed in 1997 for the design and manufacture of
nuclear imaging products. This transaction reaffirms GE's commitment to
ELGEMS as its nuclear imaging center of excellence and establishes its
presence in Israel in MR with design and manufacturing capabilities. The
operations acquired by GE Medical Systems include facilities in Israel, the
United States and England.
Elscint will retain its manufacturing facilities in Israel and will be
supplying sub-assemblies for the businesses acquired by GE Medical Systems.
When the transaction is complete, GE Medical Systems and ELGEMS will have
more than 250 medical imaging employees in Israel in the areas of Ultrasound,
Nuclear Medicine and MR modalities.
The transaction is subject to a definitive agreement, governmental
regulatory reviews and approvals and other customary closing conditions. The
transaction is expected to close in November.
GE Medical Systems, a business of the General Electric Company, is a
$4.5 billion global leader in medical diagnostic imaging systems and services.
GE Medical Systems employs nearly 16,000 people world-wide.
Elscint is an advanced medical imaging company serving healthcare
professionals worldwide. Guided by the philosophy of applying unique
technologies for the advancement of cost-effective healthcare, Elscint
designs, manufactures, sells, services and networks a wide range of
sophisticated computer-based medical imaging products including Computerized
Tomography (CT), Magnetic Resonance Imaging (MRI), Nuclear Medicine (NM) and
Mammography systems.
Any statements in this press release that may be considered
forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially. Actual results may differ from
such forward-looking statements due to the risk factors discussed in periodic
reports filed by the Company with the Securities and Exchange Commission which
the Company urges investors to consider.
SOURCE Elscint Ltd.
 back to top
Related links:
http://www.elscint.co.il
CONTACT:
Emmanuel Gill, Chairman of the Board of
Elscint Ltd., 972-4-831-5500; Laurie Berman, General Info.,
310-442-0599, Alicia Nieva-Woodgate, Media Info., 415-986-1591,
or Brian Gill, Investor Info., 212-661-8030, all of the Financial
Relations Board
NOTE TO EDITORS: For further information on Elscint, via
facsimile at no cost, please call 1-800-PRO-INFO and enter
company code 206 or ticker symbol ELT.
|
