Natus Medical to Buy Grass Tech from Astro-Med for ~$18.6M
Natus Medical Incorporated (Nasdaq: BABY) and Astro-Med, Inc. (Nasdaq: ALOT) today announced that the companies have entered into a definitive agreement for Natus to acquire the Grass Technologies Product Group from Astro-Med. The Grass Technologies Product Group includes clinically differentiated neurodiagnostic and monitoring products, including a portfolio of polysomnography (PSG) and electroencephalography (EEG) systems for both clinical and research use and related accessories and proprietary electrodes.
The transaction is expected to close on January 31, 2013. Natus will fund the approximate $18.6 million cash purchase price with existing cash and borrowings under its credit facility. Astro-Med reported revenue from the Grass segment of $18.5 million for the fiscal year ended January 31, 2012. Astro-Med will retain its Grass manufacturing facility and the companies have entered into an agreement whereby Astro-Med will continue to manufacture the Grass products and provide other transition services for a period of time, after which Natus will acquire any remaining inventory.
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