Natus Medical, a leading provider of medical devices and services, today announced that it has signed a definitive agreement to sell its wholly-owned subsidiary, Medix Medical Devices, in an employee led buyout.
Image: Natussells Medix business. Photo: Courtesy of etaphop photo/FreeDigitalPhotos.net
As part of this divestiture, Natus will sell the Medix line of products, including incubators, warmers and other Medix products. Under its new ownership, Medix will continue to distribute Medix products as well as the previously distributed line of Natus products and other third party products in Argentina and Venezuela. Medix will also provide ongoing customer service, sales and customer support, and warranty and repair services for the Medix line of products.
“This divestiture is an important step toward refocusing our business on our core products and investing in the markets we expect to grow in the future,” said Jonathan A. Kennedy, President and Chief Executive Officer of Natus. “We remain committed to the markets we serve, and will ensure a smooth and orderly transition for our customers and employees.”
Expected Financial Impact of the Divestiture
The Medix business generated $7.6 million of revenue in 2018 and was expected to contribute approximately $6.0 million to 2019 revenue. The divestiture of Medix is expected to be accretive to Natus’ operating income margin going forward. We anticipate incurring $3.0 million to $4.0 million of transaction and disposal expenses as part of the divestiture. We will update full year revenue guidance with the impact of this divestiture in our Q1 2019 earnings release.
Source: Company Press Release