Poly Medicure (531768) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition targets a leading, independent European cardiology consumables business, supporting global expansion and strengthening presence in regulated markets like Europe and the US.

• Provides access to a diversified product portfolio, established European manufacturing, and regulatory-approved products in over 60 countries.

• Leverages both companies' R&D, engineering, and distribution strengths, and deepens relationships with global med-tech customers.

• Aligns with the strategy to grow in high-margin, regulated product segments and supports innovation in new therapeutic areas.

• Promoters and leadership highlight the strategic fit, shared vision, and anticipated benefits for users and patients worldwide.

Financial terms and conditions

• 90% stake acquired for an upfront equity consideration of EUR 11 million, plus intergroup loan liabilities of EUR 3.2 million, totaling EUR 14.2 million; remaining 10% to be acquired in 2029 or 2030 based on actual EBITDA.

• Net debt of EUR 2.9 million assumed; EV/EBITDA multiple is 13x; EV/Revenue multiple for CY2024 is 1.83x.

• Enterprise value for the transaction is EUR 18.3 million.

• Additional earn-out payments tied to defined milestones over the next 4-5 years.

• PendraCare Group's CY24 revenue: EUR 9.9 million; EBITDA: EUR 1.4 million; PBT: EUR 801k.

Synergies and expected cost savings

• Expected annual EBITDA synergies of EUR 3-4 million within 3-4 years from manufacturing, R&D, procurement, and distribution efficiencies.

• Cost efficiencies anticipated by leveraging lower-cost Indian operations and consolidating facilities.

• Expansion of distribution networks in Europe and India leveraging both companies' relationships.

• Consolidation of three facilities into one to improve operational efficiency and reduce lease costs.

• Leveraging existing customer relationships and deepening presence in Europe for new product launches.