Getinge is a global provider of innovative solutions for operating rooms, intensive-care units, sterilization departments and for life science companies and institutions. In October, the company announced that it had acquired 100% of the shares in Healthmark Industries Co. Inc., a leading provider of innovative instrument care and infection control consumables. This strategic step enhances Getinge’s presence within sterile reprocessing in the U.S. and facilitates a global expansion for Healthmark.

“We are excited and honored to team up with Healthmark,” says Stéphane Le Roy, President Surgical Workflows at Getinge. “Together we will offer a broad range of solutions to sterile processing departments in hospitals. Healthmark’s position in the field of consumables for packaging and cleaning verification will be an ideal complement to our consumables, reprocessing capital equipment, and software solutions.”

Founded in 1969, Healthmark’s headquarters and main production facilities are located in Fraser, Michigan. Globally, Healthmark employs approximately 400 employees. In its fiscal year that ended October 31, 2023, Healthmark expected nearly $126 million in net sales, an approximate 15% increase over fiscal year 2022, which will translate into a material contribution to the net revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) of Getinge’s Surgical Workflows business area.
Approximately 90% of Healthmark’s sales originate from the United States.

Getinge paid approximately $320 million on a cash and debt-free basis with a normalized working capital for 100% of the shares in Healthmark. Getinge expects approximately $30 million in gradual net synergies (revenues and costs) for the coming five years. Based on expected calendar year 2023 EBITDA, the purchase price implies an EBITDA multiple of 17.1x or 15.5x net of the present value of tax benefits. According to expectations for calendar year 2024, including net synergies, the purchase price implies an EBITDA multiple of 14.6x or 13.2x net of the present value of tax benefits.

The company also anticipates a positive contribution on reported earnings per share  starting in 2026. The acquisition has been financed through cash on hand and existing credit facilities. Getinge expects to have fully integrated Healthmark by the end of 2024 and anticipates no material integration costs in 2023 and 2024. The acquisition is not expected to have a material impact on Getinge’s operating profit and earnings per share in 2023.

Earlier in the month, Getinge also announced a new climate commitment in response to  the Science Based Targets initiative (SBTi). The SBTi is a global body that allows businesses to set ambitious emission-reduction targets in line with the latest climate science. SBTi works to help companies to halve their emissions before 2030 and achieve net-zero emissions before 2050.

On October 6, the SBTi’s Target Validation Team announced that Getinge’s near- and long-term emission targets are aligned with the SBTi's 1.5°C mitigation pathways for reaching net-zero by 2050 or sooner. Getinge has committed to reaching net-zero greenhouse gas emissions across its value chain by 2050 from a 2021 base year.

“Having our targets approved by the SBTi is an important milestone on our journey to net-zero emissions,” says Mattias Perjos, Getinge President and CEO. “The global healthcare sector is today alone responsible for almost 5% of global greenhouse gas emissions. As a global medtech company we need to take responsibility for our emissions and the impact we have on the planet.”

Getinge, which is headquartered in Gothenburg, Sweden, employs an estimated 11,000 people in 40 countries. The public company has sales to 133 countries and more than 25,000 customers. Getinge North America has been a Hacienda tenant since November 2018.

For more information about Getinge, please visit www.getinge.com/us.

For more information about the Science Based Targets initiative, please visit www.sciencebasedtargets.org.

Photo by Akram Huseyn on Unsplash