ArchiMed buys majority of Soest Medical Group

ArchiMed said April 9 that it has acquired a majority stake in Soest Medical Group. Financial terms weren’t announced. Soest Medical, of the Netherlands, develops and makes self-adhesives used to secure protective drapes to patients’ skin during surgery. Soest Medical operates two brands: Eurotape and Somed.

PRESS RELEASE

ArchiMed acquires innovative medical adhesives group Soest Medical Group will expand into new products and geographies with the help of the European private equity healthcare specialist.
Press Release
April 9, 2018 – ArchiMed has acquired a majority stake in Soest Medical Group, Europe’s leading developer and number one manufacturer – ranked by sales – of innovative self-adhesives used to secure protective drapes to patients’ skin during surgery. SMG, whose revenues are growing in excess of 10 percent annually, operates two well-known brands: Eurotape, a seller of reusable adhesives, and Somed, a seller of disposable adhesives. SMG’s senior management team held equity stakes in the company and reinvested all proceeds from the sale back into SMG.

ArchiMed has diligenced extensively the operating theatre medical products sector, validating the positive secular trends driving its significant global growth. The number of surgeries performed around the world is increasing rapidly as techniques improve and are used more frequently to treat medical issues. This, combined with a rising emphasis on environmentally friendly surgical procedures, is fueling the growth of SMG’s technologically advanced adhesives business. SMG has a number of new and innovative products in development that are scheduled for release over the next 18 months.

“ArchiMed’s deep knowledge and connections throughout the global healthcare sector will help us diversify our products and expand our sales to new geographies,” says Hans Van Der Meer, chief executive of SMG. “They’ll accelerate our growth substantially.”

Founded in 1990 and based in Soest in the Netherlands, SMG sought investment from a sector specialist able to help them access new customers throughout the world. In addition to developing new products inhouse with ArchiMed’s backing, SMG will embark on a buy-and-build strategy designed to consolidate the operating theatre products sector in Europe.

“In SMG, we have identified one of the rare players in the surgical products sector that has developed a robust expansion strategy,” says Robin Filmer-Wilson, managing partner at ArchiMed. “We are thrilled to help them rapidly rollout their ambitious global development plan.”

This transaction follows a number of recent bolt-on operations executed by ArchiMed in the DACH region, notably the acquisition of German group Sigma Medizin-Technik by Micromed, a European leader in the assembly and installation of medical devices dedicated to the monitoring of brain, muscle and nervous system electrical activity. Sigma’s well-known brand, Neurowerk, distributes the group’s brain and muscle monitoring technology in more than 40 countries worldwide.

About ArchiMed
ArchiMed was formed in 2014 by former 3i Healthcare leaders as Europe’s first independent investment company focused exclusively on the healthcare sector. The firm currently manages $500 million, already partly invested in companies throughout Europe (France, Germany, Italy, the Netherlands, Switzerland, and the U.K.) and in a range of healthcare sub-sectors (Biopharma, Medtech, Care Services). In the last twenty years, the ArchiMed team directly managed healthcare companies operating globally, worth in excess of $4 billion. www.archimed-group.eu