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Profile of Mölnlycke Health Care
published in Issue 44, 1st quarter 2001
Mölnlycke Health Care is one of the worlds leading manufacturers of surgical and wound management products. In Europe it is the leader in the single-use surgical products market - which is believed to offer considerable potential around the world. The company was formed in 1998 when a venture capital group acquired and merged the clinical division of SCA and the KolmiSet division of Tamro.
Mölnlycke Health Care has made great strides over the past three years in improving profitability and cash flow and paying down debt. This has been achieved through business process re-engineering and a focus on the companys two core businesses: surgical products and wound management products. The improvement followed the companys implementation of its 4M programme, which aimed to enhance value creation by more than Skr300 mn per annum. Non-core businesses and facilities have been closed or sold, leaving the group to focus its manufacturing activities at four plants. Two of these plants are in Finland, one is in Belgium and one is in Thailand - although a second facility in Thailand is under construction.
Mölnlycke Health Care products are strongly branded. Established brands include Klinidrape surgical products and Tendra wound management products - although Mölnlycke Health Care now also owns the Barrier brand, having acquired it from Johnson & Johnson in 2001 as part of a Skr1 bn purchase of Johnson & Johnsons surgical products business. This acquisition has doubled the size of Mölnlycke Health Care, and has provided the group with a strong position in the US market to complement its strengths in Europe. Once the acquisition has been fully digested and integrated, Mölnlycke Health Care intends to seek a stock exchange listing in early 2003.
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