Poly Medicure to acquire Italy’s Citieffe Group for ₹324 crore in orthopaedics expansion

Medical device maker Poly Medicure Ltd on Wednesday (September 24) announced the signing of a definitive agreement to acquire 100% stake in Medistream SA, the holding company of Citieffe SRL and its step-down subsidiaries in the US and Mexico. The acquisition is valued at an enterprise value of ₹324 crore (€31 million). This marks the company’s second acquisition within a month.

Citieffe, based in Italy, specialises in the orthopaedic trauma and extremities segment, with a direct presence in Italy, the US, and Mexico, and distribution across more than 25 countries. In CY2024, Citieffe reported revenues of €17.3 million and EBITDA of €3.1 million, reflecting year-on-year growth of 15% and 14%, respectively.

Poly Medicure said the acquisition provides an entry point into the large global orthopaedics market, particularly trauma and extremities, the fastest-growing and most resilient segment within orthopaedics. Citieffe’s portfolio includes 45 patents, full EU MDR clearance, and FDA accreditation in the US. It holds about 12% market share in its segment in Italy, is one of the top players in Mexico with over 12% share, and is expanding its presence in the US market.

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The acquisition offers significant synergies — including expansion of the product portfolio with trauma plates, and future entry into the joint replacement market. It also eyes US growth through additional sales representatives, and potential outsourcing of parts of manufacturing to India to reduce costs.

Poly Medicure also plans to introduce Citieffe products in India through local manufacturing, while leveraging its global distribution network to expand Citieffe’s reach in Europe and beyond.

Transaction details include acquiring Medistream SA from majority stakeholder Archimed, a Europe-based healthcare PE fund. Equity valuation is pegged at €18.8 million, with repayment of shareholder loan liabilities of €4.2 million and net external debt of €8.1 million, leading to a total upfront payout of €23 million. The deal values Citieffe at an EV/EBITDA multiple of 10.2x (FY24 basis).

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Existing management, including CEO Pascal Govi, will continue post-transaction. The acquisition is subject to customary closing conditions and approvals, and is expected to close in the next 4-8 weeks.

Himanshu Baid, Managing Director, Poly Medicure Limited, 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 & extremity portfolio align with our mission to deliver innovative, patient-centric technologies. 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. "

Shares of Poly Medicure Ltd ended at ₹1,981.90, up by ₹31.90 or 1.64%, on the BSE today, September 24.

Also Read: Poly Medicure expects revenue growth of around 20% over the next 3 years