Nordic Capital Creates Surgical Products Group

A major new Swedish surgical products group, Mslnlycke Clinical, has been formed through the acquisition of SCA Mslnlycke’s Clinical Products (MCP) division and Tamro’s surgical products operations. The deal, led by Nordic Capital, was announced in October. Full terms of the transaction, which was referred to the EU competition authority for approval, have not been disclosed.

The enlarged Mslnlycke Clinical group will have 1,850 employees and annual sales of about SKr 2 billion (ecu 231 million). The Mslnlycke Clinical business manufactures surgical products such as disposable surgical gowns and patient drapes at its own plants in Belgium, Thailand, Finland, France and Ireland. Marketed under the brand names Klinidrape, Kolmidrape and Kolmisafe, the surgical products bring in annual sales of SKr 1.3 billion.

The group’s wound management products comprise both traditional fabric-based dressings and advanced gel- and silicone-based dressings, and are manufactured in Sweden, Austria and Finland. The products presently account for annual sales of SKr 600 million.

Mslnlycke Clinical is well positioned to benefit from current trends in the healthcare market. Growth in the surgical products market in Europe is being driven by the change from textiles to disposables; disposable products, which currently account for only 32% of the European market, compared with 80% of surgical products used in the US. While the market for traditional dressings is expected to experience stable growth in the coming years, the advanced products segment is currently experiencing annual growth of around 20%.

Nordic Capital and investors in its funds together own 70% of Mslnlycke Clinical; Kolmi-Set’s former parent, Tamro, has a 30% stake in the new group. The owners intend to co-ordinate the businesses and list the new group within a five-year time-frame.

Robert Andreen, Nordic Capital’s president and CEO commented: “The merger of Mslnlycke Clinical and Kolmi-Set creates interesting opportunities for us as owners to use this as a platform to develop the company’s role as a European market leader.”