New Delhi, Sept. 24 -- Poly Medicure Ltd has acquired an Italy-based medical device maker, marking its second European acquisition in weeks as it expands into the orthopaedics market in the region.
The Mumbai-listed company will fully acquire Citieffe and its step-down subsidiaries for an equity value of €18.8 million (Rs 196 crore), according to a stock exchange disclosure. The deal will involve Poly Medicure acquiring Medistream SA, the Swiss parent of Citieffe, from healthcare-focused buyout fund Archimed.
Citieffe's enterprise value stands at €31 million, as per the disclosure.
Citieffe and its step-down subsidiaries in the US and Mexico specialize in orthopaedic trauma and extremities, distributing products across more than 25 countries.
Earlier this month, Poly Medicure struck a deal to acquire a 90% stake in Netherlands-based PendraCare Group, a cardiology catheter solutions provider, for an upfront equity consideration of about €11 million. This marked its first European foray in the month.
The latest acquisition will provide Poly Medicure a platform to enter the growing global orthopaedics market, particularly the trauma and extremities segment, the company said. According to Poly Medicure, trauma and extremities is the fastest-growing segment, and Citieffe will provide it a platform to grow in this high-growth space.
Citieffe has a diverse portfolio of accredited and patented products, with 45 patents and accreditations in the EU and US. "Citieffe's strong R&D capabilities and diverse trauma and extremity portfolio aligns with our mission to deliver innovative, patient-centric technologies. Together, we will be able to accelerate the expansion into orthopaedics adjacencies and expand reach to more patients globally," said Himanshu Baid, managing director of Poly Medicure.
Founded in 1962 near Bologna, Citieffe is a vertically integrated developer, manufacturer and distributor of orthopaedic trauma and extremity fixation systems. It makes products across categories like internal and external fixators, navigation systems, as well as instruments for joints and bones.
Currently, Citieffe holds around 12% market share in Italy's trauma and extremities segment, over 12% in Mexico, and a growing presence in the US. It derives 85% of its revenue from these three markets.
In CY2024, the company reported a 15% year-on-year rise in revenue to €17.3 million, with an operating profit of €3.1 million. The latest deal values Citieffe at 10.2x its FY24 EBITDA.
Published by HT Digital Content Services with permission from VC Circle.