13. B. Braun
$4.2 Billion
Key Executives:
Ludwig Georg Braun, Chairman of Management Board
Michael Ungenthum, Vice Chairman of Management Board, Chairman Executive Board of Aesculap AG & Co. KG, Aesculap Division
Caroll Neubauer, Head of North American Region
Wolfgang Feller, Head of Avitum Division
Meinrad Lugan, Head OPM and Hospital Care Divisions
No. of Employees: 34,000
World Headquarters: Melsungen, Germany
On this year’s list, B. Braun enjoys the distinction of being the only privately held company to take its place here, based on fiscal 2006 figures. All that will change next year after the wave of private equity investment changes the landscape somewhat for companies such as Biomet, Kodak and Bausch & Lomb. But no matter what kind of financial winds may change the fortunes of some of the companies on this list, B. Braun certainly is the only company in the lineup that’s been a privately held organization for more than 160 years.
For fiscal 2006, the company reported sales of $4.2 billion, a 9.8% increase compared to last year. Net profit grew 17% to $228 million. The company attributed strong sales performance of large-volume infusion solutions and intravenous (IV) catheters as the main factor driving growth. The service sector also recorded high sales growth of 25%.
The United States, Latin America and Eastern Europe remain the strongest sectors for B. Braun. Europe (excluding Germany) and Africa combined are the largest percentage of the company’s sales (36.9%). North America is the second largest market at 24.7%. Germany is third with 21.9% of the company’s sales. B. Braun said it was able to generate 7% growth in Germany despite the impact of new tax laws.
B. Braun’s Hospital Care division, which offers products and services for infusion therapy and for basic clinical care in intensive medicine, operating areas and anesthesia, reported 2006 sales of roughly $2 billion (a 9.3% increase). High growth was the result of infusion pumps and disposable medical products as well as with IV solutions and indwelling IV cannulas, the company said. While markets in North America and Europe remained strong, B. Braun Russia recorded the best increase in sales, in excess of 70%.
The Aesculap surgical division increased sales 8.2% to $1.2 billion. Growth was driven by expanding markets in Central and Eastern Europe and in North and Latin America. For 2006, the company focused on the rollout of its activL lumbar artificial disc.
A double-digit increase—13%—also was reported for B. Braun’s Outpatient division, which is focused on diabetes care, skin and wound management, clinical nutrition, as well as stoma and incontinence care. The division recorded sales of $585 million for 2006. The main areas of growth were Spain, the United Kingdom, the United States and Brazil. In Chile, B. Braun opened a new production facility for enteral nutrition products in April 2006.
As a systems supplier for hemodialysis and extracorporeal blood treatment, the B. Braun Avitum division manufactures and sells products and services for the treatment of chronic and acute kidney failure and for therapeutic apheresis. Sales grew by 12.9% to $369 million, although sales in some countries were affected by developments in government healthcare policy regarding reimbursements for dialysis treatment. In spite of tough competition, most markets performed very well. Growth was driven by business in the United States.
In the next three years, B. Braun said it plans to invest approximately $1.5 billion in its operations—half of which is slated for Germany. Outside Germany, the company plans to expand production facilities for infusion solutions and accessories in Pennsylvania, which the company said would result in 300 new jobs. At its facility in Bethlehem, PA, B. Braun operates one of the largest medical device contract manufacturing businesses in the world.
A new infusion solutions production facility also is planned for Spain.
For fiscal 2007, B. Braun expects healthcare market conditions to remain steady, and the company is aiming for sales growth of 10%. The company also predicts higher profit growth of at least 15%.
