Hygiene and health company, Essity, has acquired Hydrofera, which offers technology and products within advanced wound care in the US. The purchase price amounts to $116 million with a potential additional earnout amount of $15 million on a cash and debt free basis. It supports Essity’s strategic priority to grow through acquisitions in medical solutions.

Hydrofera was founded in 1996 and is a developer of Hydrofera blue antibacterial wound dressings, an advanced line of wound care products designed to shorten healing times, lower treatment costs, and deliver better patient outcomes. The company, which has about 90 employees, has its head office in Manchester, Connecticut and is present in more than 15 countries, Essity said in a press release.

For the first nine months of 2021, Hydrofera reported net sales of $ 20.7 million (with an EBITDA of $5.9 million. Sales growth for the first nine months of 2021 amounted to 22 per cent. In 2020, the company reported net sales of approximately $23.5 million, with an EBITDA of $4.6 million and EBITA of $4.3 million, equivalent to an EBITA margin of 18.1 per cent. Sales growth in 2020 amounted to 13 per cent. The acquisition is expected to be accretive to Essity’s earnings per share in 2022.  

“The acquisition of Hydrofera is yet another great strategic fit for Essity further strengthening our innovation capacity and expanding our offering within advanced wound care. The company has innovations that significantly accelerate healing and reduce the patient’s discomfort,” Ulrika Kolsrud, president health and medical solutions at Essity said in a statement.

Hydrofera has a direct sales force and maintains agreements and preferred provider status with the major national medical/surgical distributors and buying groups in the US and Canadian healthcare markets. Products are used across the entire care range such as hospitals, wound clinics, long term care facilities and homecare. The suite of products is designed to meet requirements for a wide variety of wound care needs.