Duke Street, a European midmarket private equity group, has agreed to sell Medi-Globe Technologies GmbH to DCC Healthcare, a healthcare business.
DCC Healthcare is a wholly owned subsidiary of DCC plc, the FTSE 100 listed international sales, marketing and support services group. Duke Street will sell Medi-Globe for an enterprise value of approximately €245 million (£213 million). The transaction is subject to completion authority clearance in Germany and France, with completion expected in Q4 2022.
Medi-Globe is an international manufacturer and distributer of medical devices which sells into 120+ countries. The company focusses on single-use accessories for use in critical surgical and diagnostic procedures in the fields of gastroenterology and urology in particular.
The business is global, headquartered near Munich, Germany with manufacturing facilities in the Czech Republic and sales and marketing operations in Germany, France, Austria, Netherlands, China, Czech Republic and Brazil. Medi-Globe had group revenues of approximately €120 million (£104 million) in 2021.
Duke Street invested in the business in 2016, following a two-year period of origination focussed on the medical devices sub-sector. The transaction was complex, with a complicated shareholder structure in place, and the deal took close to a year to execute.
Since acquiring the business, Duke Street has backed the highly experienced management team – who will continue to lead the business post-transaction – to execute a strategy based on launching leading new products in its core therapeutic areas, and to consolidate and extend Medi-Globe’s international reach. Together with management, Duke Street’s stewardship of the business has driven significant operational improvement and accelerated growth rates of new products and into new markets. This work was alongside strategic refinement such as the sale of the non-core hospital supplies division Asid Bonz earlier this year to Medline International.
Charlie Troup, managing partner at Duke Street, said: “We are very pleased to announce the sale of Medi-Globe. Under our ownership, management has delivered a significant transformation across the business, involving investment across R&D, sales and marketing, and manufacturing. The positive development in business quality and growth has been recognised by DCC who see Medi-Globe as a key element of their strategic drive into healthcare.
“Our investment in Medi-Globe represents a classic Duke Street deal: an attractive entry multiple we delivered by seeing through a complex process; working with exceptional management to invest in growing the business swiftly and successfully during our period of ownership; and adding international expansion and securing an exit to trade, taking Duke Street’s recent record to twelve trade sales out of our last fifteen exits.”
Martin Lehner, CEO at Medi-Globe Group, said: “Medi-Globe is now performing strongly both financially and operationally, driven by the ongoing successful execution of our growth strategy. Duke Street has been a hugely supportive owner, developing that strategy with us and investing in the key resources to drive our position as a leading player in single-use endoscopy devices for the gastroenterology and urology sectors globally.”