Stout Advises Healthmark Industries on Sale to Getinge AB

Summation

  • Founded in 1969 and based in Fraser, Michigan, Healthmark Industries is a leading manufacturer, marketer, and distributor of consumable medical devices and supplies used by sterile processing departments in hospitals for cleaning verification and sterile instrument packaging.
  • Stout Managing Director John Calcagnini, who led the deal team, said, “The acquisition is expected to significantly enhance Getinge's consumable offering to complement its sales of sterilization and reprocessing equipment, offering hospital customers a complete and best-in-class bundle of products and services designed to drive market share inroads.
  • Getinge AB, founded in 1904 and based in Gothenburg, Sweden, is a leading global manufacturer of medical equipment and associated consumables used by hospitals for reprocessing and sterilization of surgical instruments and medical devices.

Stout announced today that its client, Healthmark Industries Company, Inc., has been acquired by Getinge AB for $320 million, representing a multiple of 17x estimated EBITDA for 2023. Getinge AB, founded in 1904 and based in Gothenburg, Sweden, is a leading global manufacturer of medical equipment and associated consumables used by hospitals for reprocessing and sterilization of surgical instruments and medical devices. It is also a leading manufacturer and marketer of equipment used in cardiac surgery, operating suites, and pharmaceutical production.

Founded in 1969 and based in Fraser, Michigan, Healthmark Industries is a leading manufacturer, marketer, and distributor of consumable medical devices and supplies used by sterile processing departments in hospitals for cleaning verification and sterile instrument packaging. In its fiscal year ending October 31, 2023, Healthmark expects revenue to increase 15% to $126 million.

Stout served as exclusive financial advisor to Healthmark in connection with this transaction.

Stout Managing Director John Calcagnini, who led the deal team, said, “The acquisition is expected to significantly enhance Getinge’s consumable offering to complement its sales of sterilization and reprocessing equipment, offering hospital customers a complete and best-in-class bundle of products and services designed to drive market share inroads.

“We also see an enormous opportunity for Getinge to expand distribution of Healthmark products to its’ international customers, as Healthmark generates 90% of revenue in the U.S. today. We don’t see why they could not grow the business to the point where international represents 50% of the mix, which is what we see with other large medical device manufacturers.”

Mark Basile, CEO of Healthmark, said, “We chose Stout for their expertise in medical devices and track record in managing cross-border transactions like ours, and that proved to be a great call. We would like to thank them for their leadership, efficiency, professionalism, knowledge, and excellent work in managing our process and putting together this important transaction. Stout’s assistance was irreplaceable, particularly in putting the finer points of the deal together and helping to map out the synergies. At the end of the day, Stout helped bring excellent value to the shareholders of Healthmark.”

Stout’s Eric Froidevaux, Max Halsted, Jake Kussin-Bordo, and Nate Lombard assisted in executing the deal.

Howard & Howard served as legal counsel to Healthmark. Covington and Burling LLP acted as legal counsel to Getinge AB.

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