July 13, 2006
In an effort to increase its presence in the sleep therapy market, VIASYS Healthcare Inc, Conshohocken, Pa, has acquired Tiara Medical Systems Inc, Oak Forest, Ill, a company that designs, manufactures, markets, and sells CPAP masks, headgear, circuits, and filters.
“The acquisition of Tiara Medical reflects our commitment to expand our presence in the sleep therapy market,” said Randy Thurman, chairman, president, and CEO of VIASYS Healthcare Inc. “VIASYS is a leading global competitor in pulmonary, neurological, and sleep diagnostics, as well as within the critical care segment. We believe that this acquisition positions us to compete effectively in this rapidly growing market segment by building on our existing product offering. In addition, we believe that our access to the decision makers in the sleep therapy market, our existing presence in this market, and our international sales and distribution capability will allow us to increase sales of the Tiara products."
Under the terms of the acquisition agreement, VIASYS acquired all of the outstanding stock of Tiara Medical through one of its subsidiaries for consideration of approximately $24.3 million. VIASYS financed the acquisition with cash and borrowings under its revolving credit facility. Tiara’s 2005 revenues were $10.3 million, and the company has grown approximately 15% compounded over the last 3 years.