Salt Lake City-based Dynatronics Corp. has announced an agreement to acquire the assets of Hausmann Industries Inc. of Northvale, New Jersey, a manufacturer of branded, physical therapy and athletic training products. The purchase price was announced at approximately $10 million in cash, which is based on a factor of the company’s 2016 revenues.
Combined sales for Dynatronics and Hausmann for the 12-month period ended Dec. 31, 2015, were approximately $45 million with Hausmann products accounting for approximately 32 percent of the total, Dynatronics said in a release last week.
Hausmann Industries manufactures laminated treatment tables and wood products which complement Dynatronics’ existing line of solid wood and custom design treatment tables. Hausmann also makes its ProTeam line of specialty products that serves sports teams of all levels from professional to high school.
“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.”
“We are very excited to become a part of the Dynatronics family,” said David Hausmann, CEO of Hausmann Industries. “Hausmann has been a family-owned and operated company for six decades and there is a good fit with Dynatronics. The combined businesses will provide more opportunities, and we believe Dynatronics has the scale to fuel growth and enhance our leadership role in our many markets. I look forward to continuing to lead Hausmann as division president for the long term.”
Dynatronics was founded in 1979 in Salt Lake City and employs about 150, while Hausmann started in New Jersey in 1955. Hausmann will bring about 100 people to the combined enterprise.
“We are delighted to welcome the Hausmann organization, distributors and customers to our company,” said Jeff Gephart, Dynatronics senior vice president of sales and marketing. “Through this combination, we will be able to provide a broader array of solutions to our customer base, particularly within the athletic training segment of the business.”
Dynatronics will fund the acquisition of Hausmann through an asset-based lending facility with Bank of the West and through the issuance of $7.8 million of equity securities in a private placement to a group of investors led by Prettybrook Partners LLC and its affiliates.
The acquisition transaction is subject to customary closing conditions and is expected to close in April.
