ArchiMed has acquired control of Lausanne-based MediStream, a manufacturer and marketer of innovative orthopaedic implants. Archimed was founded earlier this year by Denis Ribon, former global head of healthcare at 3i and three of his former team members.
Four months after its founding by Denis Ribon, former Global Head of Healthcare at 3i, and three of his former team members, ArchiMed’s first fund, Med 1, purchased control of Lausanne-based MediStream, a manufacturer and marketer of innovative orthopaedic implants, for €12 million. The transaction closed on July 30.
MediStream’s double-digit annual profit growth and its rapidly rising revenues – €13 million in 2014 – have been driven by innovation and international expansion at its two operating units, Citieffe and Eqval. Citieffe, a specialist in traumatology, has developed innovative fixation technology for orthopaedic accident surgery. Eqval is pioneering the production and distribution of low-cost, high-quality generic implants for hips, knees and orthopaedic reconstruction processes.
“MediStream is precisely the type of hidden champion that ArchiMed looks to identify and partner with in healthcare,” says Vincent Guillaumot, co-founder and Managing Partner of ArchiMed. “We are leveraging our global network of healthcare payers, providers, suppliers, managers and consultants to help MediStream’s highly capable existing management team accelerate international growth and innovation.”
As MediStream pursues expansion, ArchiMed will also provide balance sheet support through equity and the group’s extensive banking relationships.
“ArchiMed’s deep sector knowledge and the group’s impressive global networks in healthcare and finance make them the ideal growth catalyst for us,” says Alberto Scoccianti, chief executive of MediStream.
Scoccianti and other senior managers sold no equity in the MediStream transaction and hold substantial stakes in the company, with the opportunity to grow those stakes through performance-based option packages.
About ArchiMed – Founded by Managing Partners Denis Ribon, until March 31st, 2014 Global Head of Healthcare at 3i – one of world’s largest private equity firms – and Vincent Guillaumot, also a former 3i healthcare executive, ArchiMed is the first independent private equity team 100% dedicated to the healthcare sector in Europe. With the firm’s inaugural Med 1 fund having secured commitments of €110 million as of September 1st (its final fundraising target is €120 million), ArchiMed’s focus is now firmly on deals. ArchiMed is investing in all healthcare sectors, targeting profitable, established healthcare companies and investing €2 million to €30 million per operation, through both unleveraged growth investments and leveraged buyouts. In the last thirteen years, the ArchiMed team has invested nearly €750 million in over 20 companies, achieving a total return of over 2.6 times invested capital.