Polymed acquires 100% stake in Italy-based device maker Citieffe

Poly Medicure will acquire Italy's Citieffe Group for Rs 324 crore, gaining entry into the global orthopaedics market and expanding its overseas footprint after PendraCare

Delhi-based medical consumables and device maker Poly Medicure on Wednesday said it has signed a definitive agreement to fully acquire Italy-based Citieffe Group at an enterprise value of Rs 324 crore (around 31 million euros).

 

The company stated that it will acquire a 100 per cent stake in Medistream SA (Group), consisting of Citieffe SRL and its step-down subsidiaries in the United States (US) and Mexico.

 

It added that the acquisition is subject to customary closing conditions and approvals and is expected to be closed in the next four to eight weeks.

 

Citieffe specialises in the orthopaedic trauma and extremities segment with a distribution network across more than 25 countries.

   

“This strategic acquisition provides Poly Medicure with an entry point into the large global orthopaedics market, particularly in the trauma and extremities segment, which is the fastest growing and most resilient category within orthopaedics,” the company states in a regulatory filing on the exchanges.  

 

Commenting on the acquisition, Himanshu Baid, managing director at Poly Medicure, said that Citieffe’s strong research and development (R&D) capabilities, along with diverse trauma and extremity portfolio aligns with our mission to deliver innovative, patient-centric technologies.  

 

“We see synergies in combining Citieffe’s innovation pipeline with Polymed’s manufacturing scale and commercial reach, creating long-term value for healthcare providers, patients and our stakeholders,” he added.

 

The company also said it could introduce Citeffe in India and manufacture its products locally to offer products at lower costs.

 

Polymed added in its filing that it sees synergies by leveraging its manufacturing expertise and global distribution network of Citieffe while outsourcing parts of the manufacturing process to India that could help in reducing cost of product and boost margins.

 

This marks the second acquisition of the company within a month after Polymed acquired a 90 per cent stake in the Netherlands-based PendraCare Group at an enterprise value of Rs 188.5 crore (18.3 million euros).

 

Baid had earlier told Business Standard that Polymed was looking to significantly expand its global footprint, driven by new manufacturing facilities and an aggressive push into key export markets like the US, Brazil and Europe. 

 

On Wednesday, Poly Medicure’s shares went up by 1.61 per cent, ending the day’s trade at Rs 1,981.35 apiece on the BSE.