Halyard Health Announces Agreement to Acquire CoolSystems, Inc., Marketed as Game Ready®
Published: Jun 05, 2018
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
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.
SOURCE Halyard Health, Inc.
Company Codes: NYSE:HYH