By Fineline Cube Eyebright Medical Technology Co., Ltd (SHA: 688050) announced plans to acquire a controlling stake of at least 51% in Delta Medical, a sports‑medicine specialist, in a transaction valued at up to RMB 1 billion (USD 143 million). The deal will be funded through a mix of acquisition financing and internal funds, broadening Eyebright’s healthcare footprint and creating synergies across R&D, manufacturing, and sales.
Deal Overview
| Item | Detail |
|---|---|
| Acquirer | Eyebright Medical Technology Co., Ltd (688050.SH) |
| Target | Delta Medical (sports‑medicine specialist) |
| **Stake | Minimum 51% (controlling) |
| **Valuation | Up to RMB 1 billion (USD 143 million) |
| **Funding | Acquisition financing + internal funds |
| **Expected Close | Q2 2026 (subject to due diligence and regulatory approvals) |
Target Profile: Delta Medical
| Attribute | Detail |
|---|---|
| **Founded | 2016 |
| **Business Focus | Integrated med‑tech group covering prevention, surgical treatment, rehabilitation |
| **Product Portfolio | Sports‑medicine implants, surgical tools, arthroscopy devices, rehabilitation equipment |
| **Operations | Full‑cycle: R&D, production, sales, and service |
| **Market Position | Leading domestic sports‑medicine platform |
| Revenue (2025E) | RMB 350‑400 million (USD 50‑57 million) |
| **Growth Rate | 25‑30% CAGR (2023‑2025) |
Strategic Rationale & Synergies
For Eyebright Medical:
- Market Expansion: Enters high‑growth sports‑medicine segment, complementing core biomedical materials and high‑end devices business
- Vertical Integration: Combines Eyebright’s biomaterials expertise with Delta’s implant and device platforms
- Manufacturing Scale: Leverages Eyebright’s GMP‑certified facilities for Delta’s product expansion
- Sales Synergy: Cross‑selling opportunities via Eyebright’s 3,000‑hospital distribution network
For Delta Medical:
- Capital Infusion: Funds R&D for next‑generation arthroscopy robots and bioabsorbable implants
- Global Access: Eyebright’s platform accelerates international registration (CE, FDA) for Delta’s products
- Operational Efficiency: Shared back‑office functions reduce overhead costs by an estimated 15‑20%
Market Context & Financial Projections
| Parameter | China Sports Medicine Market | Global Market |
|---|---|---|
| Market Size (2025E) | ¥18 billion ($2.6 billion) | $8.5 billion |
| Growth Rate | 12‑15% CAGR | 8‑10% CAGR |
| Key Drivers | Rising sports injuries, aging population, minimally invasive surgery adoption | |
| Combined Revenue (2027E) | RMB 1.2 billion | – |
| EBITDA Margin | 28‑32% (post‑synergies) | – |
| Deal Accretion | EPS accretive by 2028 |
- Valuation Rationale: RMB 1 billion represents 2.5‑3.0x 2025E revenue, in line with med‑tech M&A multiples
- Synergy Value: Estimated RMB 150‑200 million in annual cost and revenue synergies by 2027
Forward‑Looking Statements
This brief contains forward‑looking statements regarding acquisition completion, synergy realization, and market expansion. Actual results may differ due to regulatory approvals, integration challenges, and competitive dynamics in the sports‑medicine sector.-Fineline Info & Tech