COTTONWOOD HEIGHTS, Utah - Dynatronics Corporation (NASDAQ: DYNT) will acquire the assets of Hausmann Industries, Inc., a manufacturer of branded, high quality physical therapy and athletic training products.
The purchase price is approximately $10 million in cash. Hausmann's 2016 revenues were $14.8 million.
Hausmann manufactures a full range of laminate treatment tables, stools, benches and cabinets to the physical therapy and athletic training markets. Hausmann is a member of the Architectural Woodwork Institute, and a Premium Certified participant in its Quality Certification program. Dynatronics has a 50,000 square foot plant in Ooltewah, Tennessee, a suburb of Chattanooga it recceives capital from Prettybrook Partners.
The company offers its products exclusively to third-party dealers, primarily in the U.S. Dynatronics manufactures, markets and sells advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic and podiatry markets.
Pro forma combined sales for Dynatronics and Hausmann for 2015 were $45 million, with Hausmann products accounting for approximately 32 percent of the total. Hausmann's revenues for 2015 were approximately $15.5 million.
Hausmann Industries, based in New Jersey, manufactures laminated treatment tables and wood products which complement Dynatronics' existing line of solid wood and custom design treatment tables. Hausmann also adds the market leading ProTeamTM line of specialty products that serves sports teams of all levels from professional to high school.
"Hausmann is an excellent strategic fit for Dynatronics, as it reinforces our commitment to and presence in the physical therapy and athletic training space," said Kelvyn Cullimore, Jr., Dynatronics' Chairman and CEO. "We have respected Hausmann's success as an industry participant over the years and look forward to welcoming David Hausmann and his company's employees to the Dynatronics family," Cullimore said.
"We are very excited to become a part of the Dynatronics family," said David Hausmann, CEO of Hausmann Industries. "Hausmann has been a family owned and operated company for six decades and there is a good fit with Dynatronics. The combined businesses will provide more opportunities, and we believe Dynatronics has the scale to fuel growth and enhance our leadership role in our many markets. I look forward to continuing to lead Hausmann as division President for the long term."
"Through this combination, we will be able to provide a broader array of solutions to our customer base, particularly within the athletic training segment of the business,"said Jeff Gephart, Dynatronics Senior Vice President of Sales and Marketing.
Dynatronics expects that there may be certain additional revenue and cost synergies from the combination of the two businesses, but plans to reinvest any such synergies into the combined business. Dynatronics also expects certain one-time costs from the integration.
Dynatronics plans to fund the acquisition of Hausmann through an asset-based lending facility with Bank of the West and through the issuance of $7.8 million of equity securities in a private placement to a group of investors led by Prettybrook Partners LLC and its affiliates. The equity investors include owners of Dynatronics' Series A convertible preferred stock, members of the Hausmann family, as well as new institutional investors. Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. is acting as the sole private placement agent for the equity portion of this transaction.
The acquisition transaction is subject to customary closing conditions and is expected to close in April 2017.