LAVAL, Que.—A Canadian manufacturer that makes wheelchair stairlifts for homes is expanding its reach in the U.S. market.
Savaria Corp. announced May 1 it has agreed to acquire Span-America Medical Systems Inc. for $109.5 million.
The Greenville, South Carolina-based firm makes mattresses and beds for the medical market, among other products. Along with its main plant in South Carolina, the company operates a distribution centre in Utah and a plant in Beamsville, Ont.
“The acquisition of Span-America provides Savaria with much greater scale while advancing our strategic plan of attaining $500 million in revenue within five years,” Marcel Bourassa, the company’s chairman, president and CEO, said in a statement.
The deal will give the Savaria better access to the U.S. market and adds a complementary product line to its portfolio, Bourassa added.
The agreement offers Span-America shareholders US$29 in cash for each share, a premium of about 33 per cent over the company’s closing price April 28.
The deal has been unanimously approved by each of the companies’ boards, but still requires the approval of Span-America shareholders. It’s expected to close in the second quarter of this year.