Natus to acquire Olympic Medical for $19.3 million

By Lisa Kerner

Charlotte, N.C., Oct. 16 - Natus Medical Inc. president and chief executive officer Jim Hawkins announced that Natus Medical will acquire Olympic Medical Corp. in a cash acquisition worth roughly $19.3 million.

The purchase price includes a cash payment of $16.6 million to be made at closing - which is expected to be Monday - and the assumption of Olympic's payables, including roughly $2.7 million of obligations due immediately following the closing. Olympic is estimated to have about $1.2 million of cash on its balance sheet.

Seattle-based Olympic develops and markets medical products used in neonatal intensive care units and hospital pediatric departments. The company had sales of $16 million in 2005.

Hawkins called Olympic "an excellent fit for Natus," because there is very little product or market overlap. Olympic product sales will be accelerated through Natus' U.S. and international sales channels.

Olympic's cool-cap product, which lowers body temperature to minimize damage caused by birth asphyxia, is in the final stages of the Food and Drug Administration approval process. Natus will make cash payments over a three-year period related to sales of the product.

"We expect to incur a charge of $4 million to $6 million in the fourth quarter for this," Hawkins said of the acquisition. Hawkins did not provide financial guidance, but said that Natus would provide guidance and financial results on Nov. 1.

Natus is a San Carlos, Calif., medical device company specializing in screening, detection, treatment, monitoring and tracking of newborn ailments.

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