Image Source: Medical Buyer
Poly Medicure Ltd, a leading Indian medical devices company, has taken a significant step in expanding its global footprint by signing a Share Purchase Agreement (SPA) with Welling Holdings B.V., Netherlands. Through this SPA, Poly Medicure will acquire a 90% stake in the PendraCare Group, consisting of PendraCare Holdings B.V. and Welling Medical B.V., at an enterprise value of approximately Rs 188.5 crore (18.3 million euros). This acquisition highlights Poly Medicure’s strategic intent to deepen its presence in Europe, a key market, and extend its footprint into the global cardiovascular medical devices sector.
Key Highlights of The Deal
Poly Medicure has incorporated a wholly owned subsidiary in the Netherlands, named RisoR Holdings B.V., which will hold the acquired shares.
The SPA has been signed to acquire 90% economic rights in the PendraCare Group, with the remaining 10% stake planned to be acquired in 2030, tied to the EBITDA performance of PendraCare in 2029.
The consideration for the upfront acquisition equity is about 11 million euros, forming part of the overall enterprise value of 18.3 million euros.
The existing management of PendraCare, led by CEO Sander Hartman, will continue operational control, with Hartman retaining a 10% non-voting stake until 2030.
The deal is expected to close within four to eight weeks, subject to regulatory approvals and customary conditions.
Strategic Importance And Market Expansion
Poly Medicure’s acquisition of the PendraCare Group brings immediate access to highly regulated healthcare markets in Europe and the United States, enhancing the company’s cardiology portfolio with FDA and CE-marked products. The PendraCare Group specializes in developing, manufacturing, and selling innovative cardiology catheter solutions and also offers design, development, and manufacturing services to global original equipment manufacturers (OEMs).
This strategic move offers multiple benefits:
A valuable, “made-in-Europe” cardiology consumables business with established product certifications.
Access to new European markets and strengthened customer relationships within the global med-tech ecosystem.
Opportunities for synergy through combining Poly Medicure’s strong engineering, research & development, manufacturing, and distribution capabilities with PendraCare’s existing operations.
Projected annual synergies of 3 to 4 million euros over the next three to four years through integrated R&D, manufacturing enhancement, expanded distribution networks, and new product launches.
Financial And Operational Overview
PendraCare Group’s 2024 financials indicate robust performance, with revenues of 9.9 million euros, gross profit of 7.3 million euros, and EBITDA of 1.4 million euros. The valuation of the acquisition reflects enterprise value to revenue and EBITDA multiples of approximately 1.83 and 13 respectively, illustrating a fair market valuation for a company with strong growth potential.
Poly Medicure’s Managing Director Himanshu Baid emphasized that this acquisition not only strengthens the company’s cardiology consumables segment but also aligns perfectly with the vision of serving people through innovative healthcare solutions globally.
Corporate Structure Post-Transaction
Poly Medicure Limited remains the parent company based in India.
Poly Medicure B.V., a wholly owned subsidiary, oversees RisoR Holdings B.V. in the Netherlands.
Post-acquisition, RisoR Holdings B.V. holds a 90% economic interest in the PendraCare Group, including PendraCare Holdings B.V. and Welling Medical B.V., which become step-down subsidiaries.
The deal expands Poly Medicure’s international footprint significantly, positioning it as a stronger global competitor in the medical devices space, particularly cardiology.
Outlook And Future Prospects
With this acquisition, Poly Medicure is poised for accelerated growth in the global cardiology consumables market. It leverages synergies from combined engineering and R&D expertise and gains from regulatory approved products with established global customer relationships. The company's presence in Europe's mature medical devices market coupled with access to the US and other regulated geographies opens avenues for new product innovation and market expansion.
The remaining 10% stake acquisition planned in 2030, based on PendraCare’s EBITDA performance, reflects a performance-linked approach ensuring alignment of interests and sustained growth collaboration.
In summary, this strategic acquisition represents a landmark development for Poly Medicure Ltd, enhancing its global reach, product capabilities, and market relevance in the cardiology domain.
Sources:
ScanX Trade, Business Standard, Business Today, Rediff Money, VCCircle, PTI News, Market Screener
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