Blackstone Invests in China’s Growing Medical Device Sector
September 23, 2014 Shanghai — Funds managed by global asset manager Blackstone (NYSE:BX) have made a significant investment into Xinrong Best Medical Instrument Co. (“Xinrong” or the “Company”), one of China’s leading manufacturers of orthopedic implants for trauma, spine, and joint applications.
Zhenglin DING, one of the founders of the Company, said, “Since Xinrong was founded in 2000, we have developed high quality medical devices, capturing a solid share of the domestic market. With increasing demand, it is the right time to bring in Blackstone, with their global experience in this sector and expertise in helping entrepreneurs to take their businesses to the next level.”
Yi LUO, Senior Managing Director, Blackstone, added, “Xinrong’s founders have built a strong business producing high quality products through a solid network of distributors across China. With China’s aging population and increasing disposable income, the market growth for orthopedic implants is significant. Together with the founders, we will strive to develop the best local expertise, maintain an international standard of technology, and increase the market share by enlarging the scale of our business.”
The Boston Consulting Group projects the total China orthopedic implant market to grow from US$1.3 billion in 2013 to reach US$4.1 billion in 2020, representing an 18% compound annual growth rate, driven by aging population, increasing disease prevalence, improving treatment rate, and growing affordability.
In 2007, funds managed by Blackstone invested in Biomet, one of the world’s leading medical device manufacturers, and currently hold a stake in DJO, a specialist in orthopedic products for rehabilitation, pain management, and physical therapy.
About Blackstone
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with almost $300 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
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