Össur (Nasdaq Copenhagen: OSSR), a Reykjavik, Iceland-based provider of mobility solutions, acquired Fior & Gentz, a Lüneburg, Germany-based maker of lower limb neuro orthotic components.
The purchase price (enterprise value) for Fior & Gentz is EUR 100 million (approx. USD 109 million) plus a contingent additional purchase price (earnout) of estimated EUR 10 million (approx. USD 11 million), maximum EUR 20 million (approx. USD 22 million), depending on sales performance in the years 2024-2026. Now, Össur pays EUR 60 million in cash, financed partly through additional credit facilities, and issues new shares worth EUR 25 million to the sellers of Fior & Gentz. The remaining EUR 15 million will be paid in cash two years after closing.
The acquisition of Fior & Gentz represents an opportunity for Össur to enter the neuro orthotics market.
Founded in 1997, Fior & Gentz is a provider of functional lower limb neuro orthotic solutions. The company develops and manufactures functional ankle and knee joints utilized in custom-made neuro orthotic devices, especially designed for people with neurological conditions leading to gait impairments, such as stroke, multiple sclerosis, and spinal cord injuries.
Fior & Gentz has around 80 employees. In 2023, the company reached total sales of approx. EUR 21 million (approx. USD 23 million), up 16% from the year before, and preliminary EBITDA margin is 30%. The majority of sales are generated in Germany with remaining sales generated across various countries internationally.
Led by CEO Sveinn Sölvason, Össur is a provider of mobility solutions that advance patient care. Significant investment in research and development has led to over 2,000 patents, designs, successful clinical outcomes, and steady growth. It operates globally and has around 4,000 employees.
Össur is committed to sustainable business practices and is signatory to the UN Global Compact, UN Women’s Empowerment Principles, and contributes to the UN Sustainable Development Goals.
Commenting on the news, Sveinn Sölvason said: “The acquisition of Fior & Gentz is in line with our Growth’27 ambition and a strong strategic fit for Össur in addition to meeting our strategic objective to address chronic mobility challenges in a broader context. We are entering a new but highly complementary product segment, as individuals with certain types of neurological conditions are already served by our primary customer channel, Orthotic & Prosthetic clinics. With Fior & Gentz’s sales largely generated in Germany today, there are commercial synergies in leveraging Össur’s global sales structure to serve a larger patient population. We are very pleased to welcome the Fior & Gentz team to Össur, and I am convinced that our combined efforts will benefit our customers and patients around the world.”
FinSMEs
16/01/2024