ESAB Acquires Ohio Medical For $127M

Fabrication and gas control technology company ESAB Corp ESAB has acquired oxygen regulators and central gas systems provider Ohio Medical LLC for $127 million.
Ohio Medical is headquartered in Gurnee, Illinois, and employs approximately 100 associates.
The company expects an additional cash tax benefit with a net present value of $15 million.
ESAB anticipates the acquisition to be adjusted EPS accretive in the first year.
During the twelve months ended August 31, 2022, Ohio Medical generated sales of more than $45 million, gross margins above 40%, and adjusted EBITDA margins greater than 20%.
The company financed the acquisition using cash on hand and expects its net leverage ratio to be less than 3x at the end of 2022. It held $53.5 million in cash and equivalents as of July 1, 2022.
"Ohio Medical increases our served market in North America for medical oxygen regulators and central gas systems, complementing our GCE and Victor businesses, creating a gas control equipment leader with revenues of more than $400 million," said CEO Shyam P. Kambeyanda.
Price Action: ESAB shares closed lower by 2.34% at $32.59 on Friday.