Halma, the global group of life-saving technology companies, today announces that it has acquired IZI Medical Products, a leading designer, manufacturer and distributor of medical devices used across a range of diagnostic and therapeutic procedures.
An aging population is driving an increase in a range of conditions, including cancer. IZI, headquartered in Baltimore, Maryland, USA and founded by a neuroradiologist and a radiation oncologist, enables better diagnosis and treatment of patients, aligning to Halma’s purpose to grow a safer, cleaner and healthier future for everyone, every day.
“Our purpose is to improve patients’ lives with physician-led innovation. This vision aligns to Halma’s when it comes to improving quality of care delivered by healthcare providers,” said Greg Groenke, Chief Executive Officer of IZI Medical Products. “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.”
IZI’s three primary markets are products for Image Guided Surgery, Interventional Oncology and Interventional Neuro and Spine procedures. With more than 100 active patents, the portfolio of 44 devices can be found in 2,500 hospitals across the USA and has been distributed to physicians in 35 countries.
IZI’s technologies add new capabilities within Halma’s Healthcare sector’s Therapeutic Solutions Group, alongside Medicel, MST and NovaBone. The IZI innovation includes:
- Medical devices placed in or on a patient’s body to mark an area for radiation treatment or surgery
- Core biopsy devices used across a wide range of anatomy, such as breast, thyroid, intrabdominal, liver, kidney and bone. This includes support surgery and radiation therapy markers
- Products used to diagnose and then strengthen vertebrae that are compromised due to either osteoporosis or bone cancer
Andrew Williams, Group Chief Executive of Halma, commented:
“IZI further extends our Healthcare sector into products supporting minimally invasive diagnosis and treatment of acute conditions, principally cancer. IZI’s growth is supported by the higher incidence of health conditions in ageing populations, improved screening and diagnostics enabling earlier treatment of disease, and expansion into adjacent applications through innovation.”
The initial consideration for IZI is US$153.5m (approximately £138m), on a cash- and debt-free basis, and will be paid in cash and funded from Halma’s existing facilities. When adjusted for tax benefits with a net present value of approximately US$11m (approximately £10m), the net initial consideration is approximately US$142.5m (approximately £128m). An additional consideration of up to US$14.5m (approximately £13m) is payable in cash, based on IZI’s growth in the year to 31 March 2023.
IZI’s unaudited revenue for the 12 months to 31 March 2022 was US$32.9m (approximately £30m), with Return on Sales substantially above Halma’s target range of 18-22%. IZI will be a standalone company within Halma’s Healthcare sector, led by its current management team.
With the signing of this transaction, Halma has completed 16 healthcare acquisitions in the past five years, totalling approximately £378m (at current rates approximately US$ 419.5m). IZI will be a standalone company within Halma’s Healthcare sector, led by its current management team.
About Halma
Halma is a global group of life-saving technology companies, focused on growing a safer, cleaner, healthier future for everyone, every day.
Its purpose defines the three broad market areas where it operates:
- Safety: protecting life as populations grow and enhancing worker safety.
- Environment: improving food and water quality, and monitoring air pollution.
- Healthcare: meeting rising healthcare demand as growing populations age and lifestyles change.
It employs over 7,000 people in more than 20 countries, with major operations in the UK, Mainland Europe, the USA and Asia Pacific. Halma is listed on the London Stock Exchange (LON: HLMA) and is a constituent of the FTSE 100 index.
For the past three years Halma has been named one of Britain’s Most Admired Companies by Management Today.
For more information see www.halma.com
