Paragon Care Acquires REM Systems Limited
Paragon Care is pleased to announce that it has reached agreement to acquire REM SYSTEMS Limited (REM), one of New Zealand’s most highly regarded healthcare businesses. REM is a specialised medical distribution company supplying acute care hospitals, day surgeries, allied health clinics, medical practices and veterinary clinics throughout New Zealand and Australia. In many ways, REM and Paragon are very similar in structure, strategy and delivery.
The acquisition substantially strengthens Paragon’s strong product offering of medical equipment, devices and consumables to the Australian and New Zealand market.
REM was established in 1981 by Leon and Shirley Schollum and were joined in 1983 by Brian Wilsher. Today, more than 35 years since its establishment, REM is run by Shirley, Brian and Paul Schollum (Paul being the son of Leon and Shirley), who joined the business in 1999. REM sources innovative and reliable products from a trusted principal base consisting of some of the world’s leading medical and veterinary supply companies. The vendors and executive management team will remain with the business throughout the earn-out period.
REM has consistently over many years invested heavily in people, training, and products to ensure it provides its vast client base with the best of the best.
Paragon’s Chairman, Shane Tanner, commented that “the acquisition of REM SYSTEMS Limited is a near perfect strategic fit for Paragon. It mirrors Paragon’s desire to provide its key customers with a product range that not only supplies quality capital items, but a full range of consumables and service and maintenance options. REM has nearly 4,000 customers spread over the two key markets of New Zealand and Australia – approximately two thirds of the business is based in New Zealand and the remaining third in Australia”.
Paragon CEO and Managing Director, Andrew Just, added “REM and Paragon have tremendous cross selling opportunities in both the customer and products base of the respective businesses. In particular REM’s commanding presence in the New Zealand healthcare market and valuable product lines provides opportunity to leverage the Paragon portfolio. REM is simply a fantastic spearhead investment into the New Zealand market”.
REM Director and vendor shareholder, Paul Schollum, commented that “the REM management team and employees are looking forward to being part of Paragon Care and the opportunities that will come with this, while also continuing to provide the high level of service that our customers and principals are accustomed to.”
The REM acquisition is in addition to the previously announced nine acquisitions foreshadowed during the recent $70m capital raising. Seven of these acquisitions have been completed as previously announced and the remaining two remain active but due to recent work around the REM transaction, are not expected to complete until the first quarter of FY19.
To view the ASX announcement click here
To visit the REM Systems website click here