9 Jun 2018

Australian firm buys NZ medical company

2:20 pm on 9 June 2018

An Auckland-based medical supplies company has been sold to an Australian firm.

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Photo: 123rf

REM Systems is being bought by Australia's Paragon Care for $54.4 million, through a mix of cash and shares.

The company was established in 1981 by Leon and Shirley Schollum and it sells a wide range of medical equipment and supplies ranging from dressings through to high definition cameras.

The company is forecasting sales this financial year of about $68m and an underlying profit of $7m.

"The REM management team and employees are looking forward to being part of Paragon Care and the opportunities that will come with this," REM director and shareholder Paul Schollum said.

Paragon has been agressively expanding through buying smaller operators in Australia, and said buying REM was an important "spearhead" into New Zealand.

"The acquisition of REM is a near perfect strategic fit," Paragon's chair Shane Tanner said.

Paragon raised $A70m earlier this year to fund the takeover of nine companies, of which it has already snapped up seven.