Rockwell Medical buys hemodialysis concentrates business of Evoqua
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Key takeaways:
- Buyout of the Evoqua hemodialysis concentrates portfolio makes Rockwell the “leading” U.S. supplier, the company said.
- Automated operations of Evoqua will add capacity and cut production costs for Rockwell.
Rockwell Medical Inc. has acquired the hemodialysis concentrates business of Evoqua Water Technologies, making the company “the leading supplier of liquid bicarbonate products” to dialysis centers in the U.S., according to a press release.
Mark Strobeck, PhD, president and CEO of Rockwell, called the $16 million transaction “transformative” for the company and “the first of many opportunities” Rockwell plans to pursue so it “can serve more clinics and, in turn, more patients.
“Evoqua’s hemodialysis concentrates business is profitable, complementary to Rockwell’s business, and immediately accretive to our top and bottom line,” Strobeck said in the release.
Rockwell, a Michigan-based manufacturer and distributor of hemodialysis products, said taking over the “fully automated” operations of Evoqua will “add significant capacity” and cut costs in its hemodialysis concentrates production line, according to the release.
Rockwell paid $11 million in cash to buy Evoqua, to be followed by two $2.5 million milestone payments at 12 months and 24 months as part of the transaction.
The acquisition includes all contracts, intellectual property and FDA 510(k) clearances from the concentrates business of Evoqua, as well as its assets, including liquid and powder bicarbonate and liquid acid. Rockwell increased its 2023 revenue guidance to between $82 million and $86 million, up from guidance between $78 million and $82 million reported in its first quarter results, according to the release.
Reference:
- Rockwell Medical announces first quarter 2023 results. https://ir.rockwellmed.com/press-releases/news-details/2023/Rockwell-Medical-Announces-First-Quarter-2023-Results/default.aspx. Published May 15, 2023. Accessed July 11, 2023.
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