UK safety equipment company Halma, is strengthening its portfolio with a $90 million buyout of US surgical device group TeDan and its subsidiaries.
The cluster of companies that will now be owned by Halma include TeDan Surgical Innovations, Inc., West Coast Surgical, LLC, Axcess Surgical Innovations, LLC, and TeDan Surgical Innovations GmbH.
The takeover, valued at an initial cash consideration of $89.1 million, will be financed from Halma's existing facilities. Adjusted for tax benefits with a net present value of approximately $9.8 million, the net initial consideration amounts to approximately $79.3 million. An additional earn-out consideration of up to $10.9 million is conditional on TeDan's performance in the period up to June 2024.
TeDan's unaudited consolidated revenue for the 12 months from March 31, 2022, and 2023, was valued at $29.2 million.
Currently Halma’s market cap is valued at $9.8 billion and the FTSE-listed company’s shares jumped from $2581.93 (£2,060) to $2630.81 (£2,099) when the announcement was made.
Post-acquisition, TeDan will operate as a standalone company in Halma's Healthcare sector, with the current management team remaining.
“World spending on healthcare is increasing as demand continues to grow, especially as the number of people over 60 has reached more than one billion.” Danny Fishman, CEP of TeDan added: “For over ten years, TeDan has been at the forefront of surgical access innovation, creating an improved experience for surgeons in the operating room and better outcomes for patients. Joining Halma will help us to grow and invest in the U.S. and internationally. Together, we share a common purpose of ensuring a healthier future for everyone, every day.”
Marc Ronchetti, Group Chief Executive of Halma, emphasised the strategic importance of TeDan's integration into Halma's Healthcare portfolio. He said: "TeDan further extends the technologies and capabilities of our Healthcare sector in the treatment of patients in acute therapeutic settings."
Halma is on a buying spree and has made a total of six acquisitions so far this financial year.
On October 26, 2023, the company made a double acquisition buying Bradford-based Alpha Instrumatics, as well as Sweden-headquartered firm AprioMed AB through its subsidiary IZI Medical Products $58.2 million (£46.5 million).
