Natus to Buy Astro-Med Subsidiary
Posted on January 9, 2013 @ 03:35 pm
San Carlos, Calif.-based Natus Medical Inc. is buying Grass Technologies Product Group from West Warwick, R.I.-based Astro-Med Inc. Grass Technologies develops clinically differentiated neurodiagnostic and monitoring products, including a portfolio of polysomnography (PSG) and electroencephalography (EEG) systems for both clinical and research use and related accessories and proprietary electrodes.
The deal is expected to close Jan. 31. Natus will fund the $18.6 million cash purchase price with existing cash and borrowings under its credit facility. Astro-Med reported revenue from the Grass subsidiary of $18.5 million for the fiscal year ended Jan. 31, 2012, and will retain its Grass manufacturing facility. The companies have agreed that Astro-Med will continue to manufacture Grass products and provide other transition services for a period of time, after which Natus will acquire any remaining inventory.
“After completing a strategic review of our businesses we have determined that it is in the best interest of our shareholders to focus on our Quick Label Systems and Test & Measurement business segments,” said Everett V. Pizzuti, CEO of Astro-Med. “We have been working on several opportunities in these two segments and as a result, we have not been able to devote the resources needed to continue the growth of Grass. We know that Natus, with its strength and focus in neurology, is an ideal place for Grass to flourish.”
Approximately one-third of Grass revenue is attributable to consumables and service, with sales from international markets contributing to 38 percent of revenue. Products used in research, which represented 14 percent of Grass revenue for the year ended Jan. 31, 2012, are sold to university researchers, pharmaceutical companies, and hospitals.
Natus makes healthcare products used for the screening, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, and balance and mobility disorders.
Astro-Med develops specialty high tech printing systems, electronic medical instrumentation, and test and measurement data acquisition systems.
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