By PBN Staff
WEST WARWICK – San Carlos, Calif.-based Natus Medical Inc. has entered into a definitive agreement to acquire the Grass Technologies product group from technology manufacturer Astro-Med Inc. for $18.6 million, the companies announced Monday.
Astro-Med’s Grass Technologies group includes clinically differentiated neurodiagnostic and monitoring products, including a portfolio of polysomnography and electroencephalography systems for clinical and research use as well as related accessories and electrodes.
Under the terms of the deal, which is expected to close of Jan. 31, Astro-Med will retain its Grass manufacturing facility. The companies have entered into an agreement where Astro-Med will continue to manufacture the Grass products and provide other transition services for a period of time, after which Natus will acquire any remaining inventory.
“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,” Everett V. Pizzuti, CEO of Astro-Med said in prepared remarks.
“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,” said Pizzuti. “We know that Natus, with its worldwide strength and focus in neurology, is an ideal place for Grass to flourish.”
Natus intends to fund the $18.6 million cash purchase price with existing cash and borrowings under its credit facility.
“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,” Jim Hawkins, CEO of Natus, said in a statement. “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.”