Getinge AB (OM:GETI B) entered into an agreement to acquire High Purity New England Inc. for $290 million.
May 30, 2023
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Getinge AB (publ) (OM:GETI B) entered into an agreement to acquire High Purity New England Inc. for $290 million on May 31, 2023. The consideration comprises of approximately $120 million in cash on closing, on a cash and debt free basis. In addition, a maximum earn out of approximately $170 million can be paid out in 2024 - 2026 if agreed net revenue performance milestones are achieved in 2023 - 2025. The acquisition will be financed through cash at hand and Getinge's net debt to EBITDA ratio is expected to be impacted by 0.3x at the closing of deal. Getinge expects to have fully integrated HPNE by the end of 2024 and anticipates no material integration costs in 2023 - 2024. The acquisition is not expected to have a material impact on Getinge's operating profit and earnings per share in 2023.
The transaction is subject to and conditional upon customary consents, closing and regulatory conditions being fulfilled, including review by the Committee on Foreign Investment in the United States and completion of the statutorily required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to close in Q3 2023. Moelis & Company UK LLP acted as financial advisor to Getinge. Houlihan Lokey, Inc. acted as financial advisor to High Purity New England, Inc. Russell Hilton, Elise Paeffgen, Blake MacKay, Maki DePalo, David Teske, David O?Connor, Jeff Belkin, John Harvel and Brendan Carroll of Alston & Bird LLP acted as legal advisors for Getinge AB.
Getinge AB is the world's leader in producing and marketing medical equipment intended to health care facilities (clinics, hospitals, rest homes, etc.). Net sales break down by family of products as follows:
- medical systems (57.4%): equipment for operating rooms (primarily tables and lighting systems), ventilators and heart and lung machines, etc.;
- hospital sterilization equipment (29.4%);
- contamination prevention equipment (13.2%): in the fields of biopharmaceutical production, biomedical research, manufacturing of medical devices and laboratory applications.
Net sales break down by source of income into sales of equipment (45.3%), consumables (37.1%), services and spare parts (17.6%).
At the end of 2021, the group had 20 production sites worldwide.
Net sales are distributed geographically as follows: Sweden (1.8%), Europe/Middle East/Africa (35.8%), Americas (37.9%) and Asia/Pacific (24.5%).
GETINGE AB 
