Haemonetics Corporation Completes Acquisition of Attune Medical
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The acquisition of Attune Medical by Haemonetics Corporation represents a strategic move to enhance its product portfolio in the medical device sector. The upfront cash payment of $160 million, with additional sales-based contingent consideration, indicates Haemonetics' confidence in the revenue-generating potential of Attune's ensoETM device. From a financial perspective, the expected contribution of $30 to $35 million in revenue and an increase in earnings per share (EPS) by $0.05 to $0.10 on a GAAP basis and $0.10 to $0.15 on an adjusted basis, is significant. It suggests a positive outlook on the accretive nature of the acquisition to Haemonetics' financials.
However, it's essential to assess the financing method - a mix of cash and debt. The increase in net debt to EBITDA ratio to approximately 2.4x post-acquisition could raise leverage concerns, although it remains within reasonable bounds for the industry. Investors should monitor how the integration of Attune Medical influences Haemonetics' cash flow and whether the anticipated sales growth materializes, as this will impact the long-term financial health and stock performance of the company.
The esophageal cooling device market is a niche but growing segment within medical technology, driven by the need for innovative solutions in procedures like radiofrequency (RF) cardiac ablation. Haemonetics' acquisition of Attune Medical positions it as a key player in this space, given that the ensoETM is the only FDA-cleared device for esophageal protection during such procedures. This exclusivity could provide a competitive edge and drive market share growth.
Understanding the market dynamics, the projected revenue growth from Attune Medical should be evaluated against the backdrop of the overall market size and growth rates for temperature regulation devices. It's also important to consider the potential for expansion into new applications or geographies, which could further enhance the value of the acquisition. Stakeholders should look for signs of successful market penetration and adoption rates post-acquisition to gauge the long-term impact on Haemonetics' business.
The strategic rationale behind Haemonetics' acquisition of Attune Medical goes beyond financial metrics, touching on the broader healthcare industry's push towards innovative and outcome-driven medical solutions. The emphasis on patient outcomes in procedures like RF cardiac ablation is a critical driver for the adoption of devices like ensoETM. The integration of such a device into Haemonetics' portfolio could enhance its standing in the eyes of healthcare providers as a comprehensive solutions provider.
Long-term, the success of this acquisition will depend on the clinical adoption and the ability to demonstrate improved patient outcomes. It's also worth considering potential regulatory changes that could affect the use of temperature regulation devices. Stakeholders should evaluate how well Haemonetics leverages its existing channels to maximize the potential of Attune Medical's technology and whether it can sustain innovation to keep pace with evolving healthcare demands.
The acquisition includes an upfront cash payment of
About Haemonetics
Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing a suite of innovative medical products and solutions for customers, to help them improve patient care and reduce the cost of healthcare. Our technology addresses important medical markets: blood and plasma component collection, the surgical suite, and hospital transfusion services. Haemonetics' Global Hospital business provides a range of solutions to address the needs of hospitals, including Interventional Technologies for electrophysiology and interventional cardiology, and Blood Management Technologies that include diagnostics to help inform treatment decisions, technologies to help avoid unnecessary allogeneic transfusions and solutions to help optimize management of blood products. To learn more about Haemonetics, visit www.haemonetics.com.
About Attune Medical
Advanced Cooling Therapy, Inc., doing business as Attune Medical, pioneered the practice of using the esophageal space to proactively manage patient temperature and to reduce the likelihood of esophageal injury during cardiac ablation procedures. Attune Medical's novel ensoETM technology is designed for use across a range of medical conditions involving patient cooling or warming, including during treatment in critical care, neurocritical care, trauma, burn surgery, spine surgery, and cancer surgery, among others.
Designed for ease-of-use, the single-tube ensoETM is placed in the esophagus and connected to an external heat exchange unit to create a closed-loop system for proactive controlled temperature management. Attune Medical has shipped more than 68,000 ensoETM devices for hospital use, and it has been utilized in more than 50,000 electrophysiology procedures since first becoming available in 2015.
To learn more about Attune Medical, visit www.attune-medical.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements do not relate strictly to historical or current facts and may be identified by the use of words such as "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "believes," "estimates," "projects," "predicts," "forecasts," "foresees," "potential" and other words of similar meaning in conjunction with statements regarding, among other things, (i) plans and objectives of management for the operation of Haemonetics, (ii) the anticipated financial impact of the transaction on Haemonetics' operating results, (iii) the anticipated benefits to Haemonetics arising from the completion of the acquisition, (iv) the impact of the acquisition on Haemonetics' business strategy and future business and operational performance, (v) the company's estimated net debt to EBITDA ratio, as defined in Haemonetics' existing credit agreement, (vi) the timeline to repay the revolving credit facility draw used to finance the acquisition and (vii) the assumptions underlying or relating to any such statement. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon Haemonetics' current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties.
Factors that may influence or contribute to the inaccuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, the failure to realize the anticipated benefits of the acquisition, Haemonetics' ability to predict accurately the demand for products and products under development by it or Attune Medical and to develop strategies to successfully address relevant markets, actual and anticipated achievement of the milestones and future sales growth on which contingent consideration is based, the impact of competitive products and pricing, technical innovations that could render products marketed or under development by Haemonetics or Attune Medical obsolete, risks related to the use and protection of intellectual property and the risk that using debt to finance, in part, the acquisition will increase Haemonetics' indebtedness. These and other factors are identified and described in more detail in Haemonetics' filings with the
Non-GAAP Financial Measures
This press release contains financial measures that are considered "non-GAAP" financial measures under applicable SEC rules and regulations. Management uses non-GAAP measures to monitor the financial performance of the business, make informed business decisions, establish budgets and forecast future results. Performance targets for management are also based on certain non-GAAP financial measures. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, Haemonetics' reported financial results prepared in accordance with
When used in this release, adjusted earnings per diluted share excludes restructuring costs, restructuring related costs, digital transformation costs, amortization of acquired intangible assets, asset impairments, accelerated device depreciation and related costs, costs related to compliance with the European Union Medical Device Regulation ("MDR") and In Vitro Diagnostic Regulation ("IVDR"), integration and transaction costs, certain tax settlements and unusual or infrequent and material litigation-related charges, and the tax impact of these items. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures to similarly titled measures used by other companies.
Investor Contacts: | |
Olga Guyette, Sr. Director-Investor Relations & Treasury | David Trenk, Manager-Investor Relations |
(781) 356-9763 | (203) 733-4987 |
Media Contact: | |
Josh Gitelson, Director-Global Communications | |
(781) 356-9776 | |
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SOURCE Haemonetics Corporation
FAQ
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