Diploma Healthcare Group ('DHG')
The Healthcare businesses are managed through DHG ("Diploma Healthcare Group"). The principal operating businesses are Somagen Diagnostics ("Somagen"), Vantage Endoscopy ("Vantage") and AMT Electrosurgery ("AMT") in Canada and BGS in Australia.
DHG operates in Healthcare markets which are mostly public sector funded and where the demand from a growing, aging and well-educated patient population drives a steady growth in funding. Within these markets, DHG supplies specialised products which are used in pathology laboratories, operating rooms and endoscopy suites in hospitals and clinics.
The business model is built on the supply, on an exclusive basis, of high quality, manufacturer branded products secured by long term distribution agreements. Strong customer relationships are forged through high levels of customer service, including experienced technical consultants advising on product applications and new product ideas and service engineers who ensure the instrumentation products are operating to the detailed specifications. Over 60% of DHG's revenues are secured under multi-year customer contracts.
Somagen is a leading supplier to the clinical diagnostics market in Canada and joined the Group in July 2004. It operates from a 16,000 sq.ft freehold facility in Edmonton.
Somagen supplies a range of consumables and instruments used in the diagnostic testing of blood, tissue and other samples in hospital laboratories. Consumable products are in the form of chemical reagents and are often packaged as kits to enable the analyst to carry out a complete testing routine. A large proportion of Somagen's revenues are generated from reagent rental contracts with terms ranging from one to five years. An instrument is provided to the customer in return for a commitment to minimum annual purchases of reagents.
Somagen's principal customers are the 500-600 laboratories within hospitals across Canada. Somagen has exclusive long-term distribution agreements for Canada with a range of suppliers from the US, Japan and Europe.
Somagen is also a leading supplier of products and services to the growing assisted reproductive technology ("ART") market, represented by approximately 30 dedicated clinics across Canada.
Somagen location: Edmonton, Alberta.
Vantage supplies a range of medical devices and related consumables and services to GI Endoscopy suites in hospitals and private clinics across Canada. Products include endoscopic imaging and reprocessing systems, therapeutic technologies and devices and other essential accessories and service support.
Vantage location: Markham, Ontario
AMT is a leading distributor of speciality electrosurgery equipment and consumables for use in the operating rooms of hospitals across Canada.
Products include surgical smoke evacuation, conductivity pads, laparoscopic electrodes and other surgical instruments and accessories. A large proportion of AMT's revenues come from multi-year customer contracts with hospitals and buying groups. Sales efforts are focused on nurse managers, physicians and surgeons.
AMT location: Kitchener, Ontario
www.amtelectrosurgery.com
In July 2010, Diploma completed the acquisition of 80% of BGS ("Big Green Surgical") in Australia. BGS is a smaller, more narrowly focused version of AMT's existing electrosurgery business in Canada and shares a number of common suppliers.
BGS location: Sydney, Australia