Poly Medicure has announced the acquisition of Citieffe Group, a vertically integrated developer, manufacturer, and distributor of Trauma and Extremity fixation systems. This strategic move aims to expand Poly Medicure’s presence in the global orthopaedic market. Citieffe reported EUR 17.3 million in revenue and EUR 3.1 million in EBITDA for CY24 and brings strong R&D capabilities and direct sales footprints in key markets.
Strategic Acquisition of Citieffe Group
Poly Medicure has finalized the acquisition of Citieffe Group, including Medistream SA and its subsidiaries. This includes Citieffe SRL and its step-down subsidiaries in the USA and Mexico. The acquisition aims to enhance Poly Medicure’s position in the global orthopaedic market.
Citieffe Group Overview
Citieffe, founded in 1962, is a vertically integrated company focused on Trauma and Extremity fixation systems. The company has direct sales in Italy, the US, and Mexico, with an EU MDR-compliant product portfolio and strong R&D capabilities, holding 45 patents. For CY24, Citieffe reported revenues of EUR 17.3 million and EBITDA of EUR 3.1 million, demonstrating revenue and EBITDA growth of 15% and 14%, respectively.
Deal Terms and Structure
The equity valuation of the deal is approximately EUR 18.8 million, and it includes repayment of shareholder loan liabilities of EUR 4.2 million. The total upfront payout is around EUR 23 million, along with the assumption of net external debt of EUR 8.1 million. The transaction values the company at an Enterprise Value of EUR 31 million, which is 10.2x its FY24 EBITDA.
Management Continuity
The existing management team will continue post-transaction, with Mr. Pascal Govi remaining as CEO of Citieffe. This ensures continuity and leverages the team’s expertise and long association with the company.
Synergies and Future Plans
Poly Medicure aims to achieve synergies through product and distribution expansion, as well as manufacturing outsourcing. This will involve leveraging Poly Medicure’s extensive network to deepen the presence in Europe and expand to the rest of the world.
Financial Performance
Poly Medicure’s total income has grown steadily, reaching 1,670 INR Cr in FY25. EBITDA stood at 453 INR Cr. The company’s net worth reached 2,766 INR Cr in FY25.
Strategic Rationale
This acquisition provides Poly Medicure with a platform for expanding into the orthopaedics segment. Citieffe’s existing presence in key markets like Italy, USA, and Mexico and its strong R&D capabilities align with Poly Medicure’s growth strategy.
Source: BSE
