Covalon Technologies Ltd., an advanced medical technologies company, today announced that it has closed the acquisition of AquaGuard, the Seattle, Washington-based division of medical technologies company Cenorin, LLC. AquaGuard’s specialized products provide patients with crucial moisture protection for wound, surgical, and vascular access sites throughout the body while showering.
Brian Pedlar, Chief Executive Officer of Covalon, said, “I am delighted to welcome the AquaGuard team to Covalon. As a unified company, AquaGuard and Covalon can market and sell a strong portfolio of infection management products such as IV Clear, MediClear Pre-Op, SurgiClear, and AquaGuard into an established client base of over 1,500 hospitals and clinics in the United States. The synergy opportunities for Covalon are truly transformative to Covalon’s United States footprint.”
As previously announced, Covalon acquired all of the assets and staff dedicated to the AquaGuard business from Cenorin, LLC. The consideration of $16.1 million was comprised of the following:
- $4.7 million in cash paid on closing
- $0.03 million in cash within 5 business days of closing
- $0.65 million of shares of Covalon issued on closing, which will be held in escrow for up to two years
- $3.32 million payable 12 months from the date hereof
- $6 5 million payable 24 months from date hereof
- $0.89 million of assumed liabilities payable to management and key staff of AquaGuard by issuance of shares of Covalon on closing
- In addition, there is potential contingent consideration of up to $1.17 million payable upon achievement of certain revenue targets by December 31, 2018.
During its last fiscal year ended December 31, 2017, the AquaGuard business recorded $11.1 million in revenue and $683,000 in profit before taxes.
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Date: October 8, 2018
Source: ReginaLeaderPost