Business
Rockwell Medical Acquires Hemodialysis Concentrates Business from Evoqua Water Technologies
Adds profitable business that generates approximately $18 million in annual revenue and will add over $3.3 million in annual EBITDA for Rockwell Medical.
About this update from Rockwell Medical, Inc.
[{"type":"text","content":"\nAdds profitable business that generates approximately $18 million in annual revenue and will add over $3.3 million in annual EBITDA for Rockwell Medical.\n\n\nSignificantly expands Rockwell Medical's geographic footprint, customer base, and product offerings; Adds fully automated manufacturing know-how and capacity.\n\n\nRockwell Medical increases its 2023 revenue guidance to between $82.0 million and $86.0 million.\n\n\nConference call and webcast will be held today at 8:00am ET\n\n\n WIXOM, Mich.--(BUSINESS WIRE)--\nRockwell Medical, Inc. (the \"Company\") (Nasdaq: RMTI), a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products to dialysis providers worldwide, today announced that the Company acquired the hemodialysis concentrates business from Evoqua Water Technologies (\"Evoqua\") for $11 million up front in cash plus two milestone payments of $2.5 million each at 12- and 24-months from the closing of the transaction. Rockwell Medical purchased this business through its cash balance. At closing of the transaction, Rockwell Medical had approximately $15.3 million in cash and cash equivalents.\n\n\nUnder the terms of the agreement, Rockwell Medical acquired Evoqua's concentrates business which includes all contracts, all intellectual property, all U.S. Food and Drug Administration 510(k) clearances, and all assets primarily associated with, and related to, Evoqua's concentrates business nationwide including liquid and powder bicarbonate and liquid acid.\n\n\nEvoqua's operations are fully automated and afford Rockwell the valuable opportunity to manufacture its hemodialysis concentrates products at a lower cost and add significant capacity to the Company's production line. By assuming responsibility for Evoqua’s concentrates customer contracts, Rockwell will further expand its footprint in the United States and assume a larger market share of the already growing hemodialysis concentrates market. Additionally, the Company will now become the leading supplier of liquid bicarbonate products to dialysis centers in the United States.\n\n\n\"We are excited by this acquisition and believe that the transaction is transformative for our business,\" said Mark Strobeck, Ph.D., President and CEO of Rockwell Medical. \"Evoqua's hemodialysis concentrates business is profitable, ...