TIDMIHC
RNS Number : 5890Y
Inspiration Healthcare Group PLC
04 January 2024
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Inspiration Healthcare Group plc
("Inspiration Healthcare" or the "Company" or the "Group")
Launch of Inspiration Healthcare's USA platform through
strategic acquisition of Airon Corporation
Highlights
-- Provides an established platform to accelerate Inspiration
Healthcare's commercial strategy in the USA and the rest of North
America
-- Adds a complementary portfolio of FDA cleared products
-- Acquisition expected to be earnings accretive in the second full year of ownership
Inspiration Healthcare (AIM: IHC), the global medical technology
company, announces the acquisition of Airon Corporation ("Airon") a
specialist respiratory device company based in Florida, USA for a
maximum consideration of $2.5m. The consideration includes an
initial upfront cash payment of $1.5m plus an earn out of up to
$1.0m dependent on the delivery of future revenues.
Overview of Airon
Airon is a leading manufacturer of specialist pneumatic
oxygen-powered life support ventilators, which have multiple uses
including in Magnetic Resonance Imaging (MRI) machines and
transportation for neonates through to adults. The company also
sells a complementary range of continuous positive airway pressure
("CPAP") devices, used in emergency medicine to support children
and adult patients. Airon has 15 employees, including sales,
marketing and tech support, and an established distribution network
across the USA. In the year to 30 April 2023, Airon generated total
revenues of $1.4m, a loss before tax of $0.4m and net assets of
$1.3m.
Strategic rationale for the acquisition
The acquisition is in line with Inspiration Healthcare's
long-term strategy to acquire companies with both complementary
technologies and sales reach to expand the Group's global
footprint, add scale and accelerate growth. The USA is a
significant strategic market for the Group and the acquisition
provides an established platform to support and de-risk the
Company's commercial strategy. It is expected to be earnings
accretive in the second full year of ownership.
In August 2023, Inspiration Healthcare submitted a 510K
application to the FDA for the SLE6000 neonatal ventilator which,
pending approval, it aims to launch in H2 FY2025. The acquisition
of Airon provides an established platform for US market entry for
the SLE6000 and other products in the Company's portfolio, enabling
the Group to leverage Airon's established US presence, brand, and
reputation for high quality specialist products. The Group will
also add the Airon products to its portfolio to drive sales across
its wider global distribution network.
The benefits of the enlarged group include:
-- An established operation, in Melbourne, Florida with
warehousing facilities, proven systems and processes for the US
market and access to key neonatal units across the USA
-- A recognised brand and experienced sales team and distributor
network targeting the same customers
-- A portfolio of complementary FDA cleared products that will allow further growth in the USA
-- Synergistic neonatal products that can be sold through the
Group's existing international sales channels
-- Support for the Group's commercial strategy in Canada
-- Expected to be earnings accretive from the second full financial year of ownership
Terms of acquisition
Inspiration has acquired Airon for $1.5m cash paid at
completion. An earn out of up to $1.0m cash is payable based on
Airon achieving certain net sales targets in the 12 months to 30
April 2025.
The acquisition will be funded through the Company's existing
resources.
Eric Gjerde, founder, President, and CEO of Airon will stay
involved in the company to help manage the transition whilst
Inspiration Healthcare search for a permanent new General Manager
for the North American business as the Group looks to invest in the
business in the forthcoming years.
Neil Campbell, CEO of Inspiration Healthcare, commented: "The
acquisition of Airon is an important strategic milestone for
Inspiration Healthcare. The potential approval of the SLE6000
represents a significant commercial opportunity and Airon gives the
Group an established direct presence and expertise in the USA,
which will accelerate and de-risk our commercial strategy. Airon
also brings a range of complementary products, which will further
enhance our portfolio and enable us to increase sales in other
markets. I am delighted to welcome the Airon team to Inspiration
Healthcare and look forward to working together to provide
lifesaving technologies to the US market."
Eric Gjerde, founder, President, and CEO of Airon said: "I am
excited that Airon is joining Inspiration Healthcare. The Group has
a strong portfolio of best-in-class products that will be of
significant value to our customers. I would like to thank our
customers and staff for their continued support as Airon embarks on
the next part of its journey."
For further information:
Inspiration Healthcare Group Tel: +44 (0)330 175 0000
plc
Neil Campbell, Chief Executive
Officer
Alan Olby, Chief Financial Officer
Liberum (Nominated Adviser & Tel: +44 (0)20 3100 2000
Broker)
Phil Walker
Richard Lindley
Will King
Walbrook PR Ltd (Media and Investor Tel: +44 (0)20 7933 8780 or
Relations) inspirationhealthcare@walbrookpr.com
Anna Dunphy Mob: +44 (0) 7876 741 001
Stephanie Cuthbert Mob: +44 (0) 7796 794 663
Louis Ashe-Jepson Mob: +44 (0) 7747 515 393
About Inspiration Healthcare
Inspiration Healthcare (AIM: IHC) designs, manufactures and
markets pioneering medical technology. Based in the UK, the Company
specialises in neonatal intensive care medical devices, which are
addressing a critical need to help to save the lives and improve
the outcomes of patients, starting with the very first breaths of
life.
The Company has a broad portfolio of its own products and
complementary distributed products , for use in neonatal intensive
care designed to support even the most premature babies throughout
their hospital stay. Its own branded products range from highly
sophisticated capital equipment such as ventilators for life
support through to single-use disposables.
The Company sells its products directly to hospitals and
healthcare providers in the UK and Ireland, where it also
distributes a range of advanced medical technologies for infusion
therapy. In the rest of the world the Company has an established
network of distribution partners around the world giving access to
more than 75 countries.
The Company operates from its world-class Manufacturing and
Technology Centre in Croydon, South London and from its facility in
Hailsham, East Sussex.
Further information on Inspiration Healthcare can be found at
www.inspirationhealthcaregroup.com
About Airon
Established in 1997, Airon Corporation proudly manufactures
products in Melbourne, Florida and markets their innovative,
reliable, effective, high technology pneumatic oxygen-powered life
support ventilation and CPAP products and accessories throughout
the world. Their products support neonates, infants, paediatrics,
children and adult patients in EMS, hospital ER and trauma, MRI,
OR, ICU and transport.
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END
ACQUOAURSBUARUR
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January 04, 2024 02:00 ET (07:00 GMT)
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