by Gus Iversen
, Editor in Chief | October 13, 2023
Getinge has acquired U.S.-based Healthmark Industries, a leading provider of sterile reprocessing solutions and infection control consumables, for approximately $320 million.
"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," said Stéphane Le Roy, president of surgical workflows at Getinge. "The acquisition strengthens Getinge's position in the infection prevention sector in the U.S., and our global customer reach in Europe and Asia will also accelerate Healthmark's international development."
Founded in 1969, Healthmark's headquarters and main production facilities are located in Fraser, Michigan in the U.S. Healthmark also has a facility in Bobigny, France. Globally, Healthmark has approximately 400 employees.
In its fiscal year ending October 31, 2023, Healthmark expects nearly $126 million in net sales, an approximate 15% increase over fiscal year 2022, which will translate into a material contribution to the net revenue and EBITDA of Getinge's Surgical Workflows business area. Approximately 90% of Healthmark's sales originate from the United States.
Mark Basile, president and CEO of Healthmark, stressed the companies were a good combination with minimal overlap in their product portfolios.
Getinge expects approximately $30 million in gradual net synergies (revenues and costs) for the coming five years. The acquisition has been financed through cash on hand and existing credit facilities. Getinge expects to have fully integrated Healthmark by the end of 2024 and anticipates no material integration costs in 2023 and 2024.
The purchase follows Getinge's acquisition of surgical device reprocessing company Ultra Clean Systems
for $16 million earlier this year, which gave the company control over services for hundreds of units installed across the U.S.