Swedish company plans to buy Diabetic Supplies
By HME News Staff
Updated 10:10 AM CST, Mon February 20, 2023
STOCKHOLM and COLUMBUS, Ohio – ADDvise Group has signed a letter of intent with the shareholders of Diabetic Supplies to buy all shares in the company. Diabetic Supplies, which distributes, among other things, continues glucose monitors and insulin pumps, generated revenues of $70 million in 2022, with an EBITDA of $2.7 million. “Through the acquisition of Diabetic Supplies, we complement our existing range of diabetes products and strengthen our market position,” said Rikard Akhtarzand, CEO of ADDvise Group. “Diabetic Supplies’ strong brand and good relationships with insurance companies open up new growth opportunities.” The purchase price for Diabetic Supplies amounts to a total of $15.8 million, divided into an initial payment of $10.3 million, and two potential earn-outs of a maximum of $5.5 million in total. To be entitled to the earn-outs, Diabetic Supplies must reach an EBITDA of $3.1 million during the next 12 months after completion of the acquisition and an EBITDA of $3.4 million for the following 12 months. ADDvise Group is a supplier of equipment to health care and research facilities. The group consists of two business areas: Lab and Healthcare.
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