Halma plc (LON:HLMA), the global group of life-saving technology companies focused on growing a safer, cleaner and healthier future for everyone every day, has announced that it has acquired IZI Medical Products, LLC (IZI).
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. IZI’s three primary markets are products for Image Guided Surgery, Interventional Oncology and Interventional Spine procedures (see “Further Information on IZI” at the end of this announcement).
The initial consideration for IZI is US$153.5m (approximately £138m), on a cash- and debt-free basis, and will be paid in cash and funded from Halma’s existing facilities. When adjusted for tax benefits with a net present value of approximately US$11m (approximately £10m), the net initial consideration is approximately US$142.5m (approximately £128m). An additional consideration of up to US$14.5m (approximately £13m) is payable in cash, based on IZI’s growth in the year to 31 March 2023.
IZI’s unaudited revenue for the 12 months to 31 March 2022 was US$32.9m (approximately £30m), with Return on Sales substantially above Halma’s target range of 18-22%. IZI will be a standalone company within Halma’s Healthcare sector, led by its current management team.
Greg Groenke, Chief Executive Officer of IZI Medical Products, commented: “Our purpose is to improve patients’ lives with physician-led innovation. This vision aligns to Halma’s when it comes to improving quality of care delivered by healthcare providers. Many physicians started using our technologies in medical school and have continued to do so throughout their careers. Joining the Halma group will take IZI Medical Products to the next level, adding R&D, commercial and international growth opportunities that will help us in our journey to advance healthcare for patients worldwide.”
Andrew Williams, Group Chief Executive of Halma, commented: “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.”
