Getinge‘s acquisition of Healthmark Industries for approximately $320 million is expected to enhance its presence in the US sterile reprocessing market.
The deal, brokered by investment bank Stout, will help Getinge improve its consumable offerings and its sterilization and reprocessing equipment. With a 17x estimated earnings before interest, taxes, depreciation, and amortization (EBITDA) multiple for 2023 this is being touted as an ambitious move by Getinge.
Stout Managing Director John Calcagnini, who led the deal team, said: “We see an enormous opportunity for Getinge to expand distribution of Healthmark products to its’ international customers, as Healthmark generates 90% of revenue in the US today. We don’t see why they could not grow the business to the point where international represents 50% of the mix, which is what we see with other large medical device manufacturers.”
In its fiscal year ending October 31, 2023, Healthmark’s predicted revenue is expected to increase 15% to $126 million.
In other news, Getinge has had a sting of US Food and Drug (FDA) recalls. The recent Class I recall is just the latest in a long line of issues for the Cardiosave IABPs. With the first, in January, which involved more than 4,400 devices due to a faulty catheter. There were two more recalls in March and an earlier one in August. The most recent recall for Getinge’s troubled IABP device was in September bringing the total to six recalls this year.
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