Agiliti Announces Definitive Agreement to Acquire Sizewise

Wednesday, September 15, 2021

Agiliti, Inc., an essential service provider to the U.S. healthcare industry, today announced that it has entered into a definitive agreement to acquire Sizewise Rentals, LLC, (“Sizewise”), a manufacturer and distributor of specialty hospital beds, surfaces and patient handling equipment, in a stock purchase transaction valued at $230 million or approximately 7.7x Adjusted EBITDA for the twelve months ended June 30, 2021. Agiliti intends to finance the transaction through a combination of cash and debt. The Boards of Directors of both companies have unanimously approved the agreement. Subject to the satisfaction of customary closing conditions, the transaction is expected to close early in the fourth quarter of 2021. Following the close of the transaction, Agiliti will provide an update to its full year 2021 financial guidance at the time it reports quarterly results for the period ending September 30, 2021.

Sizewise is a leading manufacturer and provider of specialized bed frames, therapeutic surfaces and mobility equipment serving more than 3,000 customers in the acute and post-acute care markets with products that address the needs of bariatric, geriatric, pediatric and standard patient populations. For the twelve months ended June 30, 2021, the business generated revenues of $155 million and Adjusted EBITDA of $30 million, inclusive of an estimated benefit from COVID-19 of approximately $5 million in Adjusted EBITDA. Sizewise is headquartered in Kansas and operates a 24/7 nationwide network of 65 local, in-market service branches and four manufacturing centers.

“We are pleased to welcome the Sizewise team and their customers to Agiliti and are excited about merging our best-in-class portfolios of product and service offerings,” said Tom Leonard, CEO of Agiliti. “The acquisition of Sizewise is a perfect example of our ‘overlap and extend’ approach to M&A. The combination builds on our existing geographic footprint and adds relevant scale to our Equipment Solutions service line, while simultaneously expanding our capabilities to bring differentiated products and services to market for our customers.”

Strategic Rationale

The combination enables Agiliti to broaden its portfolio and clinical expertise within the growing specialty equipment services market, expand its total addressable market opportunity and target meaningful growth and cost reduction synergies.

The company believes the transaction provides several key benefits:

Builds on Agiliti’s unique, at-scale infrastructure, optimizing the companies’ complementary distributed operations networks—including facilities, vehicles, staff, products and operating systems—which will help increase local market presence and support meaningful operating synergies.

Strengthens Agiliti’s capabilities in the supply chain, permitting greater control over R&D, manufacturing and logistics for a vital and differentiated product category.

Expands Agiliti’s value proposition with the exceptional market reputation and deep expertise that Sizewise is known for, to further address the clinical needs of bariatric patients and those at risk of skin and fall injury.

Aligns with Agiliti’s proven, end-to-end service model, providing best-in-class, high-utilization devices delivered within a comprehensive service framework.

“Sizewise has spent the past 25 years engineering, manufacturing, and selling products and service solutions that drive value for our healthcare partners,” said Brian Frickey, CEO of Sizewise. “We’re pleased to put that history and experience to work for Agiliti as the combined company continues to be an invaluable source of equipment solutions for caregivers and patients alike.”

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