Duke Street-led consortium to buy Medi-Globe

Duke Street is leading a consortium to acquire Medi-Globe Corp, a German medical devices business focused on minimally invasive surgery. The consortium partners include DB Private Equity, Atnahs Capital, Brederode and Harwood Capital. The acquisition is Duke Street’s fifth standalone deal outside a traditional fund structure. The purchase price was not announced. German venture firm GUB Wagniskapital was Medi-Globe’s anchor shareholder.

PRESS RELEASE

Duke Street, the mid-market private equity firm, is leading a consortium to acquire Medi-Globe Corporation (Medi-Globe), a Germany-based medical devices business focused on minimally invasive surgery in gastroenterology and urology.

The Medi-Globe acquisition is Duke Street’s fifth standalone deal outside a traditional fund structure.  The consortium partners include funds advised by DB Private Equity: Secondary Opportunities Fund III and other funds; Atnahs Capital, Brederode and Harwood Capital. Duke Street originated, negotiated and structured the transaction. Deutsche Bank joins Duke Street’s club of co-investors for the first time.

Headquartered in Achenmühle, Germany, Medi-Globe is a developer, manufacturer and distributor of disposable accessories for use in flexible endoscopy in the fields of gastroenterology and urology. In addition, the Group is a distributor of a wide range of hospital supplies to an expanding range of customers. Its main markets are in Germany and France, with developing businesses elsewhere in Europe, China, Japan and Brazil.

Medi-Globe, a Delaware C private company, generated EBITDA of c. €16.6m in the 12 months to December 2015, on revenues of c. €120m.

The global medical technology (med tech) market is worth approximately $400bn and is growing at c.5% per annum, driven by changing demographics and advances in surgical techniques, with even faster growth in emerging markets. The minimally invasive (MI) gastroenterology and urological segments are set to outperform the market as MI procedures reduce time in hospital, improving both productivity and patient outcomes, and are perceived to be safer.

Commenting on the investment, Charlie Troup, Managing Partner at Duke Street, said:

“Medi-Globe is a local hero in the German med-tech market because of its consistently strong product quality and innovation, high service levels and excellent clinical relationships.  These attributes are also driving fast growth in emerging markets.  Duke Street is excited to be making a significant investment in this large and growing sector. We have an excellent record of successfully building companies in the healthcare market, through value-creating acquisitions, organic growth and operational improvement.”

Dirk Steindorf, Chief Executive of Medi-Globe, added:

“Medi-Globe is looking forward to working closely with Duke Street as it supports the group through its next phase of growth. Combining our international market opportunity and strong reputation with our new investor’s record of value creation in healthcare makes a formidable partnership.”

Gerald Glasauer, Managing Director of GUB Wagniskapital, anchor shareholder of Medi-Globe, said:

“Since 2013 the main shareholders have screened the market to find the best fitting buyer for Medi-Globe. The shareholders received a considerable number of offers from interested parties and came to the conclusion that Duke Street and its consortium would be the best fit. We are confident that Medi-Globe, with its new owner Duke Street, will develop further and prosper. We wish them all the best.”

Duke Street was advised on this transaction by Macquarie, DLA and White & Case.

The main shareholders initiating the sale were represented by McDermott Will & Emery, Munich and Washington DC.