Poly Medicure Limited , a leading medical device manufacturer, has announced the acquisition of Citieffe Group, an Italian trauma and extremity orthopedic products manufacturer, for an enterprise value of €31 million. This strategic move marks Poly Medicure's entry into the lucrative orthopedic space, specifically targeting the €12 billion trauma and extremity segment.

Transaction Details

The acquisition includes:

• Equity valuation: €18.80 million
• Repayment of shareholder loan: €4.20 million
• Assumption of debt: €8.00 million

Poly Medicure will acquire 100% of Citieffe Group through its subsidiary, Poly Medicure B.V., from the selling shareholders of MediStream, a Swiss corporation.

About Citieffe Group

• Established: 1962
• Location: Bologna, Italy
• Specialization: Trauma and extremity orthopedic products
• Revenue (2024): €17.30 million
• Year-on-year growth: 15%
• EBITDA: €3.10 million
• Capacity utilization: 60%
• Gross margins: Exceeding 90%

Strategic Rationale and Synergies

Rahul Gautam, President of Strategy and Corporate Development at Poly Medicure, highlighted several key reasons for the acquisition:

1. Market Entry: Access to the fast-growing orthopedic market, particularly the trauma and extremity segment.
2. Differentiated Portfolio: Citieffe's products are fully MDR certified in Europe and have approvals in key markets, including the US.
3. Strong Market Position: 12% market share in both Italy and Mexico.
4. Integrated Business Model: Control over the entire value chain from R&D to distribution.
5. Growth Potential: Aim to double Citieffe's business in the next five years with Poly Medicure's support.

Synergy Opportunities

• Product Portfolio Expansion: Introducing plates to complement Citieffe's existing product range.
• US Market Expansion: Leveraging Citieffe's direct sales presence.
• Manufacturing Optimization: Potential outsourcing of some processes to India for cost competitiveness.
• Distribution Network Expansion: Utilizing Poly Medicure's global network to enter new markets.

Management Continuity

The existing management team, led by CEO Pascal Govi, will continue to operate the business. Poly Medicure has implemented a performance-linked incentive structure for the key managerial team over the next five years.

Financial Implications

• Gross margins: Over 90%
• EBITDA margin: Approximately 18%
• Current net asset value: About €16.50 million
• Total investment (including debt): Around €30.00 million

Future Outlook

Poly Medicure plans to leverage Citieffe's R&D capabilities to develop 3-5 new products annually. The orthopedic space, particularly the trauma and extremity segment, is projected to grow from €12 billion to €16 billion in the coming years.

Himanshu Baid, Managing Director of Poly Medicure, expressed enthusiasm about the acquisition, stating that it aligns with the company's strategy to expand into high-technology segments and key markets in Europe and the US.

Poly Medicure Limited , a prominent player in the medical devices industry, has made significant strides in expanding its global presence through strategic acquisitions. The company has recently approved the purchase of Medistream SA and its subsidiaries through its Netherlands-based entity, Poly Medicure B.V. This move will result in Poly Medicure gaining full ownership of the Citieffe Group.

Citieffe Group Acquisition Details

Poly Medicure has acquired 100% of Citieffe Group, a vertically integrated trauma and extremity fixation systems company founded in 1962. The acquisition involves:

Citieffe reported impressive financial performance:

Key highlights of Citieffe Group:

• Manufacturing facilities in Bologna, Italy
• Direct sales presence in Italy, USA, and Mexico
• 85% of revenue generated from these markets
• 45 patents
• 12% market share as the #2 independent player in Italy's trauma market

The transaction will be funded through cash balances and internal accruals, with closure expected within 4-8 weeks. Existing management, including CEO Pascal Govi, will continue post-acquisition.

Strategic Implications

These acquisitions underscore Poly Medicure's commitment to expanding its global footprint and diversifying its product portfolio. The Citieffe Group acquisition provides Poly Medicure entry into the global orthopaedic market, particularly the trauma and extremities segment valued at $12 billion globally.

Recent Expansion Activities

This latest acquisition follows closely on the heels of another significant transaction by Poly Medicure. According to the company's recent LODR (Listing Obligations and Disclosure Requirements) filing, Poly Medicure has also completed the acquisition of the PendraCare Group through its wholly-owned step-down subsidiary, RisoR Holdings B.V.

PendraCare Group Acquisition Highlights

• Date of Completion: September 23, 2025
• Acquired Entities: Pendracare Holdings B.V. and Wellinq Medical B.V. (collectively known as the PendraCare Group)
• Ownership Structure: Poly Medicure, through RisoR Holding B.V., now owns 90% of the economic rights in the PendraCare Group
• Transaction Type: Share Purchase Agreement (SPA) with Wellinq Holdings B.V.

Compliance and Disclosure

Poly Medicure has ensured compliance with regulatory requirements by promptly disclosing the details of these acquisitions to the stock exchanges. The company has adhered to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and related SEBI circulars in reporting these significant corporate actions.

Investor Conference Call

To further discuss the proposed acquisition of Citieffe Group, Poly Medicure has scheduled an investor and analyst conference call for September 25, 2025 at 4:00 PM India time. The call will be represented by Managing Director Himanshu Baid and President of Strategy & Corporate Development Rahul Gautam. The company has provided dial-in details and registration links for participants to join the discussion.

As Poly Medicure continues to execute its growth strategy through these strategic acquisitions, stakeholders will be keenly watching how these moves translate into enhanced value and market presence for the company in the competitive medical devices sector.