Sizewise is a leading manufacturer and provider of specialized bed frames, therapeutic surfaces and mobility equipment serving more than 3,000 customers in the acute and post-acute care markets with products that address the needs of bariatric, geriatric, pediatric and standard patient populations. Following the close of the transaction, Agiliti will provide an update to its full year 2021 financial guidance at the time it reports quarterly results for the period ending September 30, 2021. Subject to the satisfaction of customary closing conditions, the transaction is expected to close early in the fourth quarter of 2021. The Boards of Directors of both companies have unanimously approved the agreement. Agiliti intends to finance the transaction through a combination of cash and debt. healthcare industry, today announced that it has entered into a definitive agreement to acquire Sizewise Rentals, LLC, (“Sizewise”), a manufacturer and distributor of specialty hospital beds, surfaces and patient handling equipment, in a stock purchase transaction valued at $230 million or approximately 7.7x Adjusted EBITDA for the twelve months ended June 30, 2021. (NYSE: AGTI) (“Agiliti” or “the Company”), an essential service provider to the U.S. Expected to generate $5 million annual cost synergies in the first year, growing to $15 million by year threeĪgiliti, Inc.All-cash, stock purchase transaction valued at $230 million.Builds on Agiliti’s nationwide footprint and logistics infrastructure, increasing local market presence and creating cross-selling opportunities.Complementary product and operational capabilities broaden offering within growing specialty beds, surfaces and mobility equipment market.Oracle Delivers Mixed Q1 Results Shares Dip 1.Combination expands Agiliti’s end-to-end service offering to customers, strengthening capabilities in high-demand specialty equipment services Gallagher Snaps Up Lloyd Bedford Cox, Impresses at Investor Day WM Technology Snaps Up Sprout Shares JumpĪrthur J. Shares have exploded 286.4% year-to-date. The average Agiliti price target of $26.25 implies 18.1% upside potential to current levels. Overall, the stock commands a Strong Buy consensus rating based on 4 unanimous Buys. Recently, Goldman Sachs analyst Amit Hazan lowered the price target on the Agiliti stock to $37 (66.5% upside potential) from $43 while maintaining a Buy rating. The combination builds on our existing geographic footprint and adds relevant scale to our Equipment Solutions service line while simultaneously expanding our capabilities to bring differentiated products and services to market for our customers.” Upon closing, the acquisition will add $5 million to annual cost synergies in the first year, growing to $15 million by the third year.Īdditionally, the acquisition of Sizewise adds several benefits to Agiliti, namely, building on its unique, at-scale infrastructure by optimizing its complementary distributed operations network, strengthening its supply chain capabilities, expanding the company’s value proposition by further addressing the needs of bariatric patients and those at risk of skin and fall injury, and aligning with the company’s proven, end-to-end service model.Ĭommenting on the deal, Tom Leonard, CEO of Agiliti, said, “The acquisition of Sizewise is a perfect example of our ‘overlap and extend’ approach to M&A. ![]() The company generated revenue of $155 million and adjusted EBITDA of $30 million for the twelve months ending June 30, 2021.īy integrating Sizewise with Agiliti’s equipment solutions service line, the company broadens its portfolio and clinical expertise within the equipment services market, expands its total addressable market, and targets meaningful growth and cost reduction synergies. Sizewise serves more than 3,000 customers in the acute and post-acute care markets, with a focus on the needs of bariatric, geriatric, pediatric, and standard patient populations. Shares jumped 8.5% following the news, closing at $22.22 on September 14. healthcare industry, serving more than 7,000 national, regional, and local acute care and alternate site providers across the U.S. The purchase consideration will be financed by cash and debt, and the deal is expected to close early in Q4, subject to certain closing conditions.Īgiliti is an essential services provider to the U.S. ( AGTI) announced a stock purchase deal valued at $230 million to buy Sizewise Rentals, LLC, a manufacturer and distributor of specialty hospital beds, therapeutic surfaces, and patient handling equipment.
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