ALPHARETTA, Ga., June 5, 2018 /PRNewswire/ -- Halyard Health,
Inc. (NYSE: HYH) announced today it has entered into a
definitive agreement to acquire CoolSystems, Inc., marketed as Game
Ready, a market-leading provider of cold therapy and compression
therapy systems for a total consideration of $65 million in cash.
Game Ready develops, manufactures and markets the Game Ready®
product line, used in the pain management and rehabilitation of
patients recovering from orthopedic surgery or sports-related
injuries. Its product line includes GRPro® 2.1 cold and compression
therapy system; Med4 Elite™ multi-modality therapy unit; ATX®
Wraps; and a variety of product accessories, all of which
complement Halyard's existing Pain Management portfolio.
Game Ready's innovative brands have helped build a strong
reputation within the medical community. The Company's customer
base includes some of the world's leading orthopedic hospitals and
athletic organizations, providing Halyard greater access to the
orthopedic and sports medicine markets. GRPro, the flagship
Game Ready® product, includes a portable control unit and portfolio
of anatomical wraps and sleeves, which deliver controlled cold and
compression therapy to all major body parts. Game Ready's® new
rehabilitation product, Med4Elite, performs rapid contrast therapy
with compression.
"The acquisition of Game Ready represents another step forward
in Halyard's transformation as a pure-play medical device company
and is consistent with our strategy to continually generate value
for our patients, customers, and shareholders," said Joe Woody, Halyard chief executive officer. "The
combination of Game Ready's market leading cold therapy products
with our ON-Q* Pain Relief System portfolio will significantly
enhance our postoperative non-opioid product offerings and broaden
our orthopedic footprint. Combined, we will be better
positioned to play a critical role in providing innovative
non-opioid therapies that reduce or eliminate the use of opioids
for surgical patients and get them back to the things that
matter."
Game Ready's revenues in 2017 were approximately $35 million. The transaction is expected to be
immaterial to Halyard's fiscal year 2018 adjusted dilutive net
earnings per share, and slightly accretive to earnings in
2019. Halyard is reaffirming its 2018 adjusted dilutive net
earnings per share guidance of $1.65
to $1.85, which includes earnings
from both continuing and discontinued operations.
Halyard intends to fund the acquisition from current cash and
the transaction is expected to close early in the third
quarter.
About Halyard Health
Halyard Health (NYSE: HYH) is a medical technology company focused
on delivering clinically superior breakthrough medical device
solutions to improve patients' quality of life. Headquartered
in Alpharetta, Georgia, Halyard is
committed to addressing some of today's most important healthcare
needs, such as reducing the use of opioids while helping patients
move from surgery to recovery. Halyard develops, manufactures and
markets its recognized brands in more than 90 countries. For more
information, visit www.halyardhealth.com.
As previously announced, Halyard Health is changing its name to
Avanos Medical, Inc., effective June 30,
2018. Its current ticker symbol on the New York Stock
Exchange (HYH) is also changing at that time to AVNS. The first day
of trading under the new ticker symbol will be July 2, 2018.
Forward-Looking Statements
This press release contains information that includes or is based
on "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based on the current plans and expectations of
management and are subject to various risks and uncertainties that
could cause our actual results to differ materially from those
expressed or implied in such statements. Forward-looking statements
include all statements that do not relate solely to historical or
current facts, and can generally be identified by the use of words
such as "may", "believe", "will", "expect", "project", " estimate",
"anticipate", "plan", or "continue" and similar expressions,
among others. Such statements include expected accretion and
other financial and operational impacts of the acquisition of
CoolSystems. Factors that may cause actual results to differ
materially from the anticipated results expressed in such forward
looking statements include, but are not limited to: weakening of
economic conditions that could adversely affect the level of demand
for our products; pricing pressures generally, including
cost-containment measures that could adversely affect the price of
or demand for our products; changes in foreign exchange markets;
legislative and regulatory actions; unanticipated issues arising in
connection with clinical studies and otherwise that affect U.S.
Food and Drug Administration approval of new products; changes in
reimbursement levels from third-party payors; a significant
increase in product liability claims; the impact of investigative
and legal proceedings and compliance risks; the impact of the
federal legislation to reform the United
States healthcare system; changes in financial markets; and
changes in the competitive environment. Additional information
concerning these and other factors that may impact future results
is contained in our filings with the U.S. Securities and Exchange
Commission, including our most recent Form 10-K and Quarterly
Reports on Form 10-Q.
View original
content:http://www.prnewswire.com/news-releases/halyard-health-announces-agreement-to-acquire-coolsystems-inc-marketed-as-game-ready-300659275.html
SOURCE Halyard Health, Inc.