Halma announced that it acquired medical consumable device maker IZI Medical Products for $153.5 million.
Maryland-based IZI develops devices used by interventional radiologists and surgeons across acute, hospital-based diagnostic and therapeutic procedures. Its three primary markets consist of image-guided surgery, interventional oncology and interventional spine procedures.
Among IZI’s offerings is the Quick-Core Auto Biopsy System for automatic biopsies. It also develops the Kiva vertebral compression fracture (VCF) treatment system.
“Our purpose is to improve patients’ lives with physician-led innovation,” said IZI CEO Greg Groenke. “This vision aligns to Halma’s when it comes to improving quality of care delivered by healthcare providers. Many physicians started using our technologies in medical school and have continued to do so throughout their careers. Joining the Halma group will take IZI Medical Products to the next level, adding R&D, commercial and international growth opportunities that will help us in our journey to advance healthcare for patients worldwide.”
Halma plans to pay the initial consideration of $153.5 million in cash from its existing facilities. With adjusted tax benefits, the net initial consideration totals approximately $142.5 million. An additional consideration of up to $14.5 million remains payable in cash based on IZI’s growth through March 31, 2023.
IZI brought in revenue for the 12 months ended March 31, 2022, of $32.9 million. Its return on sales came in substantially above Halma’s target range of 18%-22%. IZI will be a standalone company within Halma’s healthcare sector, led by its current management team.
“IZI further extends our Healthcare sector into products supporting minimally invasive diagnosis and treatment of acute conditions, principally cancer,” said Halma Group Chief Executive Andrew Williams. “IZI’s growth is supported by the higher incidence of health conditions in aging populations, improved screening and diagnostics enabling earlier treatment of disease, and expansion into adjacent applications through innovation.”
