ESAB Acquires Ohio Medical For $127M

  • Fabrication and gas control technology company ESAB Corp ESAB has acquired oxygen regulators and central gas systems provider Ohio Medical LLC for $127 million.
  • Ohio Medical is headquartered in Gurnee, Illinois, and employs approximately 100 associates.
  • The company expects an additional cash tax benefit with a net present value of $15 million. 
  • ESAB anticipates the acquisition to be adjusted EPS accretive in the first year.
  • During the twelve months ended August 31, 2022, Ohio Medical generated sales of more than $45 million, gross margins above 40%, and adjusted EBITDA margins greater than 20%.
  • The company financed the acquisition using cash on hand and expects its net leverage ratio to be less than 3x at the end of 2022. It held $53.5 million in cash and equivalents as of July 1, 2022.
  • "Ohio Medical increases our served market in North America for medical oxygen regulators and central gas systems, complementing our GCE and Victor businesses, creating a gas control equipment leader with revenues of more than $400 million," said CEO Shyam P. Kambeyanda.
  • Price Action: ESAB shares closed lower by 2.34% at $32.59 on Friday.
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