Getinge receives FTC approval to acquire Atrium Medical

Getinge has been granted the approval of US anti-trust authority FTC (Federal Trade Commission) to go ahead with the acquisition of Atrium Medical Inc. The acquisition was finalized on 4 November, 2011, and will be consolidated in Getinge's accounts as of 1 November this year.

Atrium Medical has exclusively grown organically since its inception. In the past five-year period, Atrium Medical has grown an average of 19% annually and its sales are expected to reach slightly more than USD 200 million in the current calendar year. Atrium Medical's headquarters, including product development and production, are based in Hudson, New Hampshire, in the US. Atrium Medical sells its products through proprietary sales offices in the US, the UK, Germany, France, the Netherlands, India, Australia and New Zealand. In addition to direct sales through proprietary market companies, Atrium Medical's products are also sold through a network of international distributors. For the current year, sales to customers outside the US are expected to account for 30% of overall sales. Atrium Medical has about 700 employees worldwide.

Atrium Medical's product programme is primarily geared toward the cardiovascular market and encompasses cardio-thoracic drainage products, vascular grafts, balloon expandable covered stents, thrombus management catheters and biosurgery products. Atrium Medical has a strong pipeline of new products for the coming years, which are largely based on the company's know-how and extensive expertise in the deployment of ePTFE in medical-technical applications.

The purchase consideration for Atrium Medical amounts to USD 680 million (Enterprise Value), corresponding to an EV/EBIT multiple of 12.8 based on expected earnings in 2012. Atrium Medical is expected to be able to continue expanding rapidly in line with its growth in recent years, and will benefit from Getinge's existing sales organisation, which features proprietary representation in a significant number of markets in which the company is not currently active. Excluding acquisition-related costs of about USD 6 million, which will be charged to the fourth quarter of 2011, and excluding restructuring costs of about USD 8 million, the acquisition is expected to contribute somewhat to the Group's earnings per share in 2012. As of 2013, the contribution to the Group's earnings per share is expected to rise rapidly.

Source:

GETINGE GROUP

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