Natus Buys EEG Business From Astro-Med
Posted on February 6, 2013 @ 01:18 pm
San Carlos, Calif.-based Natus Medical Inc. has completed the acquisition of the Grass Technologies Product Group from Astro-Med Inc., a West Warwick, R.I.-based manufacturer of specialty high-tech printing systems, electronic medical instrumentation, and test and measurement data acquisition systems.
On January 7, Natus and Astro-Med announced that they had entered into an asset purchase agreement for the transaction. Grass Technologies includes clinically differentiated neurodiagnostic and monitoring products, including a portfolio of polysomnography and electroencephalography (EEG) systems for both clinical and research use and related accessories and proprietary electrodes.
“Grass Technologies has been consistently profitable and we expect Grass to be accretive to our earnings in our first full quarter of ownership and for the full year 2013,” said Jim Hawkins, CEO of Natus. “The Grass acquisition expands our presence into certain international markets, adds to our disposable product offerings, and provides Natus an entry into the research segment of the neurodiagnostic market. This acquisition will continue to allow us to bring additional value to customers.”
“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 fast growing quick label systems and test & measurement business segments,” said Everett V. Pizzuti, CEO of Astro-Med. “We have been working on several unique 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 worldwide strength and focus in neurology, is an ideal place for Grass to flourish.”
Albert Grass, who pioneered the development and production of the first EEG machines used in medical applications, founded the Grass Instrument Company in 1935. 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 most recent fiscal year, are sold to university researchers, pharmaceutical companies, and hospitals.
Natus provides 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, as well as balance and mobility disorders.
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