Poly Medicure Acquires Citieffe Group for Rs 324 Cr

New Delhi, Sep 24 (PTI) Medical device maker Poly Medicure Ltd on Wednesday said it will fully acquire Italy-based Citieffe Group at an enterprise value of Rs 324 crore (EUR 31 million).

The company has signed a definitive agreement to acquire 100 per cent stake in Medistream SA (Group) consisting of Citieffe SRL and its step-down subsidiaries in USA & Mexico, the company said in a statement.

Citieffe is an Italy-based manufacturer specialising in the orthopaedic trauma and extremities segment with a direct presence in Italy, USA, and Mexico, and distribution across over 25 countries, it added.

This 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 said.

"This acquisition marks another step in our journey to become a comprehensive healthcare solutions provider. Citieffe's strong R&D capabilities and diverse trauma and extremity portfolio aligns with our mission to deliver innovative, patient-centric technologies," Poly Medicure Ltd Managing Director Himanshu Baid said.

He further said, "Together, we will be able to accelerate the expansion into orthopaedics adjacencies and expand reach to more patients globally... Citieffe has direct sales operations in the US, Italy, and Mexico providing us a deeper foothold in these key markets."

The existing management of Citieffe will continue post transaction and Pascal Govi will continue as its CEO, the statement.

Archimed, a Europe based healthcare focused PE fund, held a majority stake in Citieffe.

"Over the years, Citieffe has built solid and long-term growth foundations with an innovative and MDR-accredited product portfolio as well as a strong international footprint notably in the US. We are proud to see Citieffe joining a leading Medtech Group to pursue its growth trajectory," Archimed Partner Benoit Varichon said.

This marks the second acquisition of the company within a month after the 90 per cent stake acquisition in the Netherlands-based PendraCare Group from Wellinq Holdings B.V. at an enterprise value of Rs 188.5 crore (Euro 18.3 million), announced earlier this month.

Poly Medicure said 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.

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

Poly Medicure said the acquisition is subject to customary closing conditions and approvals and is expected to be closed in next 4-8 weeks.