Poly Medicure Limited (Polymed) on Wednesday (September 2) said it has signed definitive agreements to acquire a 90% stake in Netherlands-based PendraCare Group, consisting of PendraCare Holdings and Wellinq Medical, from Wellinq Holdings BV at an enterprise value of ₹188.5 crore (€18.3 million). The balance 10% stake will be acquired in 2030 based on the actual EBITDA of CY2029.
PendraCare Group develops, manufactures and sells innovative cardiology catheter solutions and also provides design, development and manufacturing services to global OEMs. This bolt-on acquisition will allow Polymed to scale its cardiology business globally with immediate access to the highly-regulated markets of Europe and the United States.
The group is one of the few independent cardiology ancillary consumable businesses in Europe and fits well with Polymed’s strategy to grow its cardiology segment through strong research, development and manufacturing capabilities.
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Its products already hold regulatory approvals in Europe (MDD and MDR), as well as from the US FDA, ANVISA, CFDA, KFDA, among multiple other country-specific registrations. The deal also provides Polymed with a European manufacturing base, enabling localised production and distribution, and brings established relationships with large global med-tech OEMs.
Polymed expects to generate €3-4 million of annual synergies in the next 3-4 years by leveraging its R&D and engineering capabilities to drive innovation and cost efficiencies, expanding its distribution network through global relationships, using PendraCare’s existing OEM partnerships to push its cardiology products, and strengthening its presence in Europe for both existing and new product launches.
On the financial front, PendraCare reported pro forma revenue of €9.9 million in CY2024, with gross profit of €7.3 million, EBITDA of €1.4 million and profit before tax of €801,000. The transaction values the company at an EV/Revenue multiple of 1.83x and an EV/EBITDA multiple of 13x.
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The existing management will continue to lead the business, with PendraCare Group CEO Sander Hartman retaining a 10% non-voting stake until 2030. Certain earn-out payments will be made subject to the achievement of defined milestones over the next 4-5 years.
The acquisition is subject to customary closing conditions and approvals and is expected to be completed within the next four to eight weeks.
Shares of Poly Medicure Ltd ended at ₹2,064.10, down by ₹13.50 or 0.65%, on the BSE today (Sept 3).
(Edited by : Shoma Bhattacharjee)
