Poly Medicure Acquires Italian Orthopaedics Firm For ₹324 Crore

Poly Medicure has signed an agreement to acquire Medistream SA, which includes Citieffe SRL and its subsidiaries in the USA and Mexico, for an enterprise value of ₹324 crore (€31 million).

The company’s stock closed 1.5% higher at ₹1,982 on Wednesday.

Citieffe specializes in orthopaedic trauma and extremities products, with direct operations in Italy, the USA, and Mexico, and distribution across more than 25 countries.

Acquisition Rationale

The acquisition enables Poly Medicure to access the global orthopaedics market, particularly the trauma and extremities segment. Citieffe brings a differentiated, fully accredited, and patented portfolio of 45 trauma and extremity products with EU MDR and FDA clearances. The company holds over 12% market share in Italy and Mexico and has a growing presence in the U.S., the world’s largest orthopaedic market.

The integrated business model of Citieffe, including R&D, manufacturing, and sales, enables swifter product development and market introduction. Poly Medicure expects to leverage its manufacturing expertise and global distribution network to expand Citieffe’s presence, introduce its products in India, and potentially outsource certain manufacturing processes to India to improve margins.

Poly Medicure will make an upfront payout of around €23 million, including repayment of shareholder loan liabilities. Existing management, including CEO Pascal Govi, will continue in their roles post-transaction. The deal is to close within four to eight weeks.

On Tuesday, Poly Medicure’s Dutch unit RisoR Holdings completed the acquisition of Pendracare Holdings B.V. and Welling Medical B.V.

Stock Watch

Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day earlier.

However, the stock has been under selling pressure this year, declining nearly 25%.

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