CLEVELAND — Chart Industries announced Dec. 2 that its wholly-owned Caire subsidiary will acquire San Diego-based SeQual Technologies for approximately $40 million, plus the possibility of up to $20 million of additional future payments contingent on SeQual's financial performance over a two-year period post-closing. SeQual's annual sales are approximately $36 million, according to a Chart release.
SeQual's line of oxygen concentrators includes its continuous flow portable Eclipse 3 and the IntegraTen high-capacity bedside unit. Caire, which operates under Chart's Biomedical segment, offers a line of liquid oxygen reservoirs and portables sold under the Liberator, Companion, Spirit and Helios brands.
Calling the acquisition "an excellent strategic fit for us," Sam Thomas, Chart Industries chairman, CEO and president, said the move "expands our respiratory product offering with a leading portable, non-delivery oxygen concentrator."
Steve Shaw, president of Chart BioMedical, added that the transaction "combines SeQual's technology and patient-focused product development capabilities with our global marketing, distribution and operating expertise." Chart expects to integrate the majority of SeQual's operations during 2011, Shaw said.
In a release from SeQual, CEO and President Ron Richard said Chart's "financial stability and global presence will allow SeQual to focus on providing solutions for the oxygen segment of health care. With over 40,000 Eclipses deployed throughout the world, SeQual is a proven leader in long-term oxygen therapy and prides itself on clinical efficacy and education. COPD is a leading cause of death and it's imperative to find innovative respiratory solutions for this global need, not only in clinical product offerings, but in programs and patient support as well."
The deal is expected to close by the end of January 2011.