Getinge Acquires Healthmark Industries Strengthening Global Position in Sterile Reprocessing Market
Getinge, a European medical equipment company, has recently acquired Healthmark Industries Co. Inc., a US-based company specializing in instrument care and infection control consumables. The acquisition, valued at approximately $320 million, marks a significant step for Getinge, strengthening its presence in the sterile reprocessing sector in the United States while opening doors for Healthmark’s global expansion. In the fiscal year ending October 31, 2023, Healthmark is expected to achieve nearly $126 million, representing an increase of approximately 15% compared to the previous fiscal year. Consequently, Getinge paid approximately 2.5x sales for the company.
Healthmark Industries, founded in 1969 and headquartered in Fraser, Michigan, is well-regarded for its expertise in instrument care and infection control consumables. With a workforce of approximately 400 employees and 90% of revenue coming from the United States. The deal will strengthen Getinge’s global presence in Sterile reprocessing and could lead them to be more competitive against companies such as Steris, Stryker, Johnson & Johnson, Halyard Health, and Cantel Medical that also compete in the sterile reprocessing market.
The acquisition was executed at a purchase price of around $320 million, on a cash and debt-free basis, taking into account normalized working capital for 100% of Healthmark’s shares. Getinge anticipates gradual net synergies of approximately $30 million (revenues and costs) over the next five years. The purchase price equates to an EBITDA multiple of 17.1x for expected calendar year 2023 EBITDA or 15.5x when considering the present value of tax benefits. The acquisition is expected to be accretive to earnings beginning in 2026.
The transaction was funded using available cash reserves and existing credit facilities. Getinge plans to complete the integration of Healthmark by the end of 2024 and the waiting period mandated under the Hart-Scott-Rodino Antitrust Improvements Act (HSR) has concluded, and the acquisition has been officially closed, requiring no further regulatory approvals or waiting periods.
Stéphane Le Roy, President Surgical Workflows at Getinge, expressed enthusiasm about this collaboration, stating, “We are excited and honored to team up with Healthmark. Together we will offer a broad range of solutions to sterile processing departments in hospitals. Healthmark’s position in the field of consumables for cleaning verification and packaging will be an ideal complement to our consumables, reprocessing capital equipment, and software solutions.”