Safety equipment maker Halma PLC on Monday said it has bought medical consumable device maker IZI Medical Products LLC for up to $168.0 million.
‘Headquartered in Maryland, USA, IZI is a designer, manufacturer and distributor of medical consumable devices which are mainly used by interventional radiologists and surgeons in a range of acute, hospital-based diagnostic and therapeutic procedures,’ Buckinghamshire-based Halma said.
Halma will pay $153.5 million for IZI on a cash-free, debt-free bass. This will be funded from the company’s existing facilities.
An additional payment of up to $14.5 million is payable on cash, dependent on IZI’s growth in the year to March 31, 2023.
In the financial year to March 31, 2022, IZI reported revenue of $32.9 million, with return on sales ‘substantially’ above Halma’s target range of 18% to 22%.
Under the agreement, IZI will be a stand-alone company within Halma’s Healthcare sector, led by its current management team.
Halma Chief Executive Andrew Williams said: ‘IZI further extends our Healthcare sector into products supporting minimally invasive diagnosis and treatment of acute conditions, principally cancer. IZI’s growth is supported by the higher incidence of health conditions in ageing populations, improved screening and diagnostics enabling earlier treatment of disease, and expansion into adjacent applications through innovation.’
Shares in Halma were down 1.9% to 2,007.00 pence each in London early Monday.
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