Dynatronics Corporation, a portfolio company of Prettybrook Partners, has agreed to acquire the assets of Hausmann Industries, a manufacturer of physical therapy and athletic training products. The purchase price is approximately $10 million in cash which represents a multiple of 8.4x Hausmann’s 2016 unaudited adjusted EBITDA of $1.2 million.
Hausmann manufactures a full range of laminate treatment tables, stools, benches and cabinets used in the physical therapy and athletic training markets. The company sells its products exclusively through third-party dealers, primarily in the US. Hausmann has been a family-owned and operated company for six decades and is led by its current CEO David Hausmann. The company has a 65,000 sq. ft. facility and headquarters in Northvale, NJ (www.hausmann.com).
Dynatronics manufactures and sells medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic and podiatry markets. The company is based in Salt Lake City (www.dynatronics.com).
Hausmann’s laminated treatment tables and wood products complement Dynatronics’ existing line of solid wood and custom design treatment tables. The buy of Hausmann also adds the ProTeam line of athletic training tables and treatment furniture that are sold to sports teams of all levels from professional to high school.
Pro forma combined sales for Dynatronics and Hausmann for the twelve month period ended December 31, 2015 were approximately $45 million, with Hausmann products accounting for approximately 32% of combined revenues. Hausmann’s unaudited revenues for the twelve months ended December 31, 2015 were approximately $15.5 million, with gross margin of approximately 30.2%, and operating income of approximately $1.1 million. Adjusted EBITDA for Hausmann during the twelve months ended December 31, 2015 was $1.5 million.
“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.”
Prettybrook first invested in publicly-traded Dynatronics in June 2015. Prettybrook invests in control-oriented leveraged buyouts of privately-held businesses, corporate divisions, and public companies; restructuring and/or recapitalizations of privately-held businesses; staged transitions of corporate-owned entities; partnerships with other strategic and financial buyers; and going-private transactions. The firm was founded in 2012 and is led by its managing partners Stuart Essig and Erin Enright. Prettybrook is headquartered in Princeton, NJ (www.prettybrookpartners.com).
Dynatronics plans to fund the acquisition of Hausmann through an asset-based lending facility with Bank of the West (www.bankofthewest.com) and through the issuance of $7.8 million of equity securities in a private placement to a group of investors led by Prettybrook. Ladenburg Thalmann (www.ladenburg.com) is the private placement agent for the equity portion of this transaction.
This transaction is expected to close by the end of April 2017.
© 2017 Private Equity Professional | March 23, 2017
