- Company for manufacturing and gas control technology ESAB Corp ESAB has acquired a supplier of oxygen regulators and central gas systems Ohio Medical LLC for $127 million.
- Ohio Medical is headquartered in Gurnee, Illinois and employs approximately 100 people.
- The Company anticipates an additional cash tax benefit with a net present value of US$15 million.
- ESAB expects the acquisition to result in adjusted earnings per share in the first year.
- For the twelve months ended August 31, 2022, Ohio Medical had revenues in excess of $45 million, gross margins in excess of 40% and Adjusted EBITDA margins in excess of 20%.
- The company funded the acquisition with cash and expects its net debt ratio to be less than 3x by the end of 2022 held $53.5 million in cash and equivalents from July 1, 2022.
- “Ohio Medical is expanding our served North American market for medical oxygen regulators and central gas systems, complementing our GCE and Victor businesses and creating a leading gas control equipment provider with revenues in excess of $400 million,” said Shyam P. Kambeyanda, CEO.
- Price promotion: ESAB shares closed 2.34% lower at $32.59 on Friday.
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