Press release Gothenburg, Sweden on May 31, 2023
Getinge to acquire High Purity New England, Inc., a leading provider of single-use solutions for bioprocessing applications
Getinge announces today an agreement to acquire 100% of the shares in High Purity New England, Inc. a leading US-based company in the fast-growing areas of custom single-use solutions for bioprocessing applications.
“This acquisition is another step in Getinge Life Science strategic journey to further expand our presence in the biopharma segment”, says Eric Honroth, President Life Science at Getinge. “High Purity New England (HPNE) has in recent years successfully supplied the industry with dedicated single use assemblies. We are delighted to join forces with HPNE providing our customers with comprehensive and innovative solutions for bioprocessing applications.”
High Purity New England (HPNE) offers a comprehensive range of proprietary and distributed products from drug discovery, upstream and downstream processing, to fill-and-finish. HPNE’s products assist leading biopharmaceutical and biotechnology players in the production of monoclonal antibodies, vaccines, cell and gene therapies and other next-generation therapies. The company, founded in 2002, is a privately held company with approximately 150 employees. Its headquarters and production facilities are located in Smithfield, Rhode Island in the United States.
“We are very excited to be joining the Getinge family. For over 20 years, High Purity New England has provided best-in-class products and solutions to the biopharmaceutical industry. As we forge ahead into the next 20 years and beyond, I am thrilled to know that HPNE will continue to efficiently enable our customers to streamline and innovate their bioprocesses in combination with the Getinge name. Together, we will accomplish great things,” says Mark A. Sitcoske, Founder and CEO of High Purity New England.
Getinge will acquire all outstanding shares from the shareholders of HPNE and will pay approximately SEK 1,300 M (USD 120 M) in cash on closing, on a cash and debt free basis. In addition, a maximum earn out of approximately SEK 1,850 M (USD 170 M) can be paid out in 2024 - 2026 if agreed net revenue performance milestones are achieved in 2023 - 2025. The acquisition will be financed through cash at hand and Getinge’s net debt to EBITDA ratio is expected to be impacted by 0.3x at the closing of deal. Getinge expects to have fully integrated HPNE by the end of 2024 and anticipates no material integration costs in 2023 - 2024. The acquisition is not expected to have a material impact on Getinge’s operating profit and earnings per share in 2023.
The transaction is expected to close in Q3 2023 and is subject to and conditional upon customary consents, closing and regulatory conditions being fulfilled, including review by the Committee on Foreign Investment in the United States (CFIUS) and completion of the statutorily required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act (HSR).
For more information about High Purity New England https://hp-ne.com/
Lars Mattsson, Head of Investor Relations
Phone: +46 (0)10 335 0043
Anna Appelqvist, Vice President Corporate Communications
Phone: +46 (0)10 335 5906
This information is such that Getinge AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on May 31, 2023, at 3.15 p.m. CEST.
With a firm belief that every person and community should have access to the best possible care, Getinge provides hospitals and life science institutions with products and solutions that aim to improve clinical results and optimize workflows. The offering includes products and solutions for intensive care, cardiovascular procedures, operating rooms, sterile reprocessing and life science. Getinge employs over 10,000 people worldwide and the products are sold in more than 135 countries.