Covalon Technologies said today it inked a definitive agreement to acquire Cenorin’s AquaGuard division in a deal worth approximately $12.4 million (CAD $16.1 million).
AquaGuard develops products intended to provide patients with moisture protection for wound, surgical and vascular access sites during showers, Ontario-based Covalon said.
Current AquaGuard CEO Gerry Arambula and existing leadership at the company will continue to “play key roles in leading the business going forward,” according to a press release. Covalon said that with the acquisition, it will have a customer base of over 1,500 hospitals and clinics.
“The AquaGuard sales and operations teams are very excited about joining forces with Covalon. Our AquaGuard team has built a profitable and growing business that is well-positioned to represent and sell many of Covalon’s infection management products, such as IV Clear, immediately into our customer base. We are looking forward to working with the Covalon team to transform Covalon’s business in the United States. Products will be made available through AquaGuard’s established distribution channels at key hospitals and group purchasing organizations across the United States, as well as through third-party distribution partners, including Amazon,” AquaGuard prez Gerry Arambul said in a press release.
Covalon said that it expects the deal to close in less than 60 days, and that it is subject to customary closing conditions and TSX Venture Exchange and lender approval. The deal also includes a possible $900,000 (CAD $1.2 million) in milestone payments.
“I am very excited about this acquisition – AquaGuard’s experienced sales team and specialized product line are a perfect synergistic fit for Covalon’s business. AquaGuard’s talented sales team has built strong relationships with clinicians and hospital staff throughout the United States that make decisions on the very same products Covalon makes – vascular access dressings, surgical site management products, and advanced wound care dressings,” Covalon CEO Brian Pedlar said in a prepared statement.
Last month, Covalon Technologies said that it received $3.5 million as part of a new licensing agreement with an unnamed large global medical company.