Natus Medical has acquired Massachusetts based Hawaii Medical. Hawaii Medical manufactures and markets single-use disposable products sold into the NICU and nursery in hospitals.
Natus acquired Hawaii Medical for a cash price of $2.9 million, with the potential for additional consideration depending upon the achievement of certain revenue targets.
Jim Hawkins, President and CEO, Natus, said: “We plan to integrate and transition production of Hawaii Medical products into our Olympic Medical facility in Seattle during our third quarter, and expect the acquisition to be accretive to earnings per share in the first full quarter of ownership.”
“I am pleased to announce that Hawaii Medical founder Read McCarty will stay on with Natus in a consulting role and concentrate on continuing to develop innovative products for the newborn care market. Prior to starting Hawaii Medical, Mr. McCarty founded Children Medical Ventures that is currently owned by Phillips Medical,” he added.
Hawaii Medical reported revenue of approximately $3.2 million in the year ended June 30, 2009, selling substantially all of their products through a single national distributor in North America. Natus expects to transition those sales to its existing newborn-care direct sales force during the third quarter of 2009, and launch these products internationally in the fourth quarter.