LINET enters agreement with Sizewise on strategic collaboration, looks to substantial growth in American market.
The United States of America represent the largest market in the world. In recent years, LINET has sought a way to significantly increase sales there, which typically exceed 1 billion CZK annually. Therefore, the company has entered into an agreement with Sizewise, which operates in the same industry and has four manufacturing facilities in the USA and more than 65 branches.
The agreement will provide LINET with access to an expansive distribution network that can service all parts of the USA. The two companies also agreed on a specific product, which will pair the Eleganza 5 bed with mattresses that Sizewise manufactures in California. This combining of the best of both companies is to continue in the future.
‘Our long-term goal is to grow substantially in order to rival the two largest companies in the hospital bed market – both of them American companies. That’s why we looked for the most effective way to compete with them in their domestic market. I can confirm that collaboration with Sizewise was our preferred option,’ explains LINET Group CEO Tomáš Kolář. In the past few years, the company’s management has actively examined ways to effect exponential sales growth.
‘The real winners in this deal are our customers and their patients. We can offer them the best beds in a given class with top-of-the-line mattresses from Sizewise. Moreover, we can rent the equipment to them, which is a very interesting option financially,’ says Sizewise CEO Brian Frickey. Previously, it had been difficult to rent beds due to the need for a robust distribution network. That obstacle has now been eliminated.
According to Mr Kolář, both companies will thus considerably bolster their portfolios: ‘Two very successful companies have joined forces here. Sizewise has a stable base of loyal customers, an established distribution network, and, importantly, experience in rentals. The agreement is neither a merger nor a partnership – it’s a sharing of innovations that the customer can profit from.’
The agreement with Sizewise is one of the results of the aforesaid search for ways to further accelerate growth. The goal is to achieve sales of half a billion dollars as quickly as possible. In this pursuit, LINET is also analysing several acquisition targets and gradually expanding its global distribution network, which currently encompasses more than 100 countries. In 17 of those countries, the company has its own subsidiaries.