04 Jan AddLife has reached an agreement with the majority-owner to acquire MBA Incorporado S.L, a leading Spanish orthopaedic and trauma surgery business
AddLife is continuing its expansion in Europe and has today made an offer to acquire all the shares in MBA Incorporado S.L (“MBA”), which has been accepted by Alantra Private Equity that owns approximately 75 percent of the shares. The agreed purchase price for 100 percent of the equity amounts to EUR 111 million cash and signing of the sale and purchase agreement for all shares, as well as completion, is intended for January 2022.
MBA is a leading independent orthopaedic surgery distributor with operations in Spain, Italy and Portugal. The company has a turnover of approximately EUR 67 million and around 285 employees. The acquisition of MBA strengthens AddLife’s position in advanced surgery and is fully in line with its strategy of expanding into relevant niches in Europe. MBA has a long-established presence in Spain, which accounts for 88% of sales. Italy and Portugal are markets that represent a smaller share of sales but where the company sees opportunities for future growth. According to official statistics, Spain is the fifth largest Medtech market in Europe.
MBA is a leading independent distributor that offers solutions and high-quality products and adds customer value with its high level of clinical expertise and provision of leading services to public and private customers in Spain, Portugal and Italy. With a customer base of more than 950 hospitals, MBA has a strong position among regional and local hospitals, where service and support are competitive advantages. The main product areas are orthopaedic implants for hip, knee and shoulder reconstructions, as well as products and solutions intended mainly for spine surgery and neurosurgery, trauma and anaesthesia. The Group has a supplier base with strong brands. The supplier relationships are longstanding and most of the agreements are exclusive.
MBA’s corporate culture is characterised by an entrepreneurial spirit and a strong sense of belonging among all its staff, which favours customer focus and adds value based on a dedicated, specialised sales force, service, support, and fast deliveries. The company has its own Academy, the MBA Institute where it trains its own staff as well as end-users, such as nurses and doctors working with surgery. The Group is led by an experienced, sales-oriented management team, which will remain in place after the acquisition. The employees have extensive experience and high clinical competence and can thus support customers in the best possible way. As a result of the acquisition, AddLife will become an even more attractive partner for leading suppliers in our niches and product areas in Europe. In addition, the acquisition will make it possible to increase internal cooperation and sell the Group’s own products in new markets.
“I am very enthusiastic about this acquisition. MBA gives us a solid point of entry in Spain, one of Europe’s largest Medtech markets, an increased presence in Italy and a start in Portugal. Within the Group, there are several opportunities for cooperation between our companies in the niches in which MBA is currently a leader. The similarities between AddLife’s and MBA’s cultures are striking and lay the basis for further development together in the future,” says Kristina Willgård, CEO AddLife.
MBA is expected to generate sales of approximately EUR 67 million in the 2021 financial year, with Spain accounting for 88 percent of sales, Portugal 7 percent and Italy 5 percent. The group has experienced steady growth, with a CAGR of 5 percent since 2016. The company has good profitability and is expected to report an EBITA margin of around 17 percent.
MBA is being acquired from Alantra Private Equity, which currently owns approximately 75 percent of the shares, and a number of minority shareholders, which own 25 percent. The total purchase price for the equity amounts to EUR 111 million in cash and is being financed through extended credit facilities. MBA will operate as a separate subgroup and will be part of the Medtech business area.
Stockholm, 22 December 2021
AddLife AB (publ)
For further information, please contact:
Kristina Willgård, CEO, AddLife AB, +46 (0)705 10 12 23
Martin Almgren, Business Area Manager Medtech and CFO, AddLife AB, +46 (0)702 28 15 45
Brief overview of MBA
Founded in 1988, MBA is a leading Spanish independent distributor in the field of orthopaedic surgery. The company offers solutions and high-quality products and adds customer value with its high level of clinical expertise and provision of services to public and private customers in Spain, Portugal and Italy. The Group has business operations in ten therapeutic segments, with the main areas being orthopaedic implants for hip, knee, and shoulder reconstructions, as well as products and solutions intended mainly for back surgery and neurosurgery, trauma and anaesthesia.
MBA is expected to generate sales of approximately EUR 67 million in the 2021 financial year, with EBITA of approximately 17 percent. The company has about 285 employees and is based in Gijon, Asturias, Spain.
AddLife is an independent European player in Life Science that offers high-quality products, services and consulting to both the private and public sectors. AddLife has about 1,800 employees in around 70 operating subsidiaries, which operate under their own brands. The Group has annual sales of approximately SEK 7.5 billion. AddLife is listed on the NASDAQ Stockholm stock exchange.
The information in this press release is of the nature that AddLife AB (publ) is obliged to make public pursuant to Nasdaq Stockholm rulebook for issuers. The information was submitted for publication, through the agency of the contact persons set out above, on 22 December 2021 at 2.00 p.m (CET).
SOURCE: Add Life, 22nd December 2021