Tuesday, October 18, 2022
ESAB Corporation, a world leader in fabrication and gas control technology, announced today that it has acquired Ohio Medical, LLC, a global leader in oxygen regulators and central gas systems, from a private investor group for a cash purchase price of $127 million. The Company also expects an additional cash tax benefit with a net present value of $15 million. During the twelve months ended August 31, 2022, Ohio Medical generated over $45 million of sales, gross margins above 40%, and adjusted EBITDA margins greater than 20%. The acquisition is expected to be adjusted EPS accretive to ESAB in the first year. 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. ESAB will provide additional information during its earnings call on Thursday, November 3, 2022.
Shyam P. Kambeyanda, President and Chief Executive Officer of ESAB, stated, “We are thrilled to welcome the Ohio Medical team to ESAB Corporation. 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. We are excited about the significant global cross-selling opportunities and how Ohio Medical advances our strategy to drive faster growth, higher margins, lower cyclicality, and stronger cash flow.”
Anthony Wieczorek, Chief Executive Officer of Ohio Medical, stated, “For more than 100 years, we have been a market leader in oxygen regulators and central gas systems. Joining ESAB will help us accelerate our expansion globally, while allowing us to harness the power of the ESAB Business System (EBX) to better serve our customers with increased efficiency and innovative customer solutions.”
Ohio Medical is headquartered in Gurnee, Illinois and employs approximately 100 associates, providing ESAB with strong brands and distribution in the large and attractive North American market. Combined with ESAB’s Victor and GCE businesses, the addition of Ohio Medical creates an unmatched global medical and industrial gas control portfolio that enhances the company’s worldwide offerings.
PricewaterhouseCoopers Corporate Finance LLC served as financial adviser and Tucker Ellis LLP served as legal counsel to the Company.
