New Delhi, Sept. 3 -- Medical devices maker Poly Medicure Ltd said Wednesday it will acquire a 90% stake in PendraCare Group, a Dutch company which provides cardiology catheter-based solutions.
The Mumbai-listed company has agreed to acquire the Leek, Netherlands-based company, which consists of units PendraCare Holdings and Wellinq Medical from Wellinq Holdings B.V.
Poly Medicure will acquire a 90% stake in PendraCare for an upfront equity consideration of about 11 million euros, it said in a stock-exchange filing. This implies an enterprise value of 18.3 million euros ($21.3 million or Rs 188.5 crore), according to a statement.
Poly Medicure said the acquisition provides an opportunity to scale its cardiology business globally with immediate access to Europe and the US markets. The acquisition aligns with its strategy to strengthen its cardiology business via strong R&D and manufacturing capabilities in ancillary cardiology consumables segment.
Cardiology ancillary consumables are disposable items used in the diagnosis and treatment of heart and blood vessel conditions such as electrocardiogram (ECG) electrodes and gels, catheters, guidewires and other items.
"This move brings us a valuable, 'made-in-Europe' cardiology consumables business with FDA and CE-marked products and long-term relationships with global OEMs," said Himanshu Baid, managing director, Poly Medicure. "Most importantly, it deepens our presence in Europe - a key market for Polymed," Baid added.
Poly Medicure said the remaining 10% stake will be acquired in 2030 based on actual earnings before interest, taxes, depreciation and amortization (EBITDA) for calendar year 2029.
It expects to generate annual synergies in the range of 3 million to 4 million euros in next three-four years with the deal, with the Indian company providing engineering, R&D and manufacturing capabilities, aid the expansion of distribution network, tap Pendracare's existing customer relationships, and deepen presence in Europe for existing and new product launches.
Founded by Floris Alkemade and led by Sander Hartman, the company develops, manufactures and sells cardiology catheters such as guiding and diagnostic catheters. It provides design, development and manufacturing services to other global original equipment manufacturers (OEMs).
For 2024, PendraCare recorded revenue of 9.9 million euros and a gross profit of 7.3 million euros. It reported an EBITDA of 1.4 million euros for the year.
Published by HT Digital Content Services with permission from VC Circle.