Healthcare services group Uniphar has entered Europe's largest medtech market with the purchase of German group CoRRect Medical.
CoRRect commercialises and distributes medical device products in the cardiology sector across Germany and Switzerland, focusing on the fast-growing area of interventional cardiology.
The acquisition is seen as a milestone for Uniphar's plans for expansion into Europe. Analysts at Davy, corporate broker to Uniphar, noted in a report to clients that Germany is the largest medtech market in Europe, accounting for about a quarter of business across the continent.
The purchase price was not disclosed, but is believed to be about €25 million. It includes an up-front payment, plus further consideration payable upon achievement of performance targets. Davy said it expected that about two-thirds of the price would be paid up front.
“Uniphar continues to execute on its European growth ambitions in commercial and clinical,” Davy said. The division provides outsourced sales, marketing and distribution services to pharma and medical device manufacturers.
Uniphar now has commercial and clinical operations in Ireland, Britain, the Benelux countries, Scandinavia, Germany and Switzerland. Davy said the company was likely to establish a presence in more European countries over the coming years “building a unique platform and competitive position”.
"The acquisition of CoRRect Medical underpins our focus on developing a truly pan-European offering for our partners," Uniphar chief executive Ger Rabbette said, noting CoRRect's strong relationships with German and Swiss doctors and hospitals.
It is forecast to deliver a return on capital employed to the group in line with Uniphar’s target rate of 12 per cent to 15 per cent within three years.
CoRRect Medical managing director Michael Braun said the takeover would allow his company to continue to grow in the interventional cardiology space as well as explore new opportunities.
“This represents the beginning of an exciting new chapter for CoRRect Medical,” he said.
Shares in Uniphar edged ahead on news of the deal, trading at €3.31 in Dublin. Davy said it was moving its price target for the group to €3.85.
