Halma PLC (LSE:HLMA), the FTSE 100 safety equipment manufacturer, said it acquired IZI Medical Products, a designer, manufacturer and distributor of medical consumable devices.
IZI's products are largely used by radiologists and surgeons, while the Maryland-based company’s main markets are image-guided surgery, interventional oncology and interventional spine procedures, Halma said in a statement.
"IZI further extends our Healthcare sector into products supporting minimally invasive diagnosis and treatment of acute conditions, principally cancer,” said Halma chief executive Andrew Williams.
Halma said it will pay an initial consideration of US$153.5mln (£138mln) for IZI on a cash and debt-free basis and from its own facilities. However, when adjusted for tax benefits with a net present value of US$11mln (£10mln), the net initial consideration is approximately US$142.mln (£128mln).
Up to a further US$14.5mln (£13mln) is payable, based on IZI’s growth in the year to 31 March 2023.
In the year to 31 March 2022, IZI generated revenue of US$32.9m (£30mln), with return on sales substantially above Halma's target range of 18-22%, said the statement.
IZI will be a standalone company within Halma's Healthcare sector, led by its current management team, Halma added.
“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,” said IZI chief executive Greg Groenke.