Deltamed, a leading global manufacturer of peripheral vascular access devices owned by Milan-listed Eukedos (former Arkimedica) will be acquired by Augens Capital srl, at its first investment, joined by DB Private Equity (the private equity division of Deutsche Bank) and a group of Delta Med’s managers led by its ceo Alessandro Balboni (download here the press release).
More in detail the investment will be carried out Augeo 1 srl, a newco capitalized by Augens Holding spa (owned by Augens Capital9, by the German fund and by the management. DB Private equity will control the shareholders’ capital of the company while Augens will control the governance.The transaction is expected to close by the end of November.
Delta Med is active in the production and distribution, in Italy and abroad, of disposable medical devices and accessories for infusion therapies, custom packs for operating rooms and other products for the pharmaceutical, healthcare and dental sectors. Based in Viadana, near Mantua in Northern Italy, Delta Med sells its products globally and generated revenues of 16.5 million euros in 2014 with 3.5 millions of ebitda and it is expected to close year 2015 with 15 millions in revenues and a 20% ebitda margin..
Deltamed has been valued 21 million euros (enterprise value), of which 19 millions are equity value. The acquisition of Delta Med will be financed with a senior loan facility arranged by MPS Capital Service (MPS Group) which include an 8 million euros acquisition finance line and a 4 million euros capex line. The latter will support investments needed to develop a pipeline of new products.
Augens Capital was assisted by EY and Essentia Advisory. LMS acted as Augens Capital’s legal advisor. Chieffi Murelli acted as legal advisor and CMC Consulting Group as financial advisor to Eukedos.
Augens Capital is an investment firm set up in 2014 to invest in Italian mid-market companies by Marco Mantica, a former partner of Vestar Capital in charge of the Italian activities of the US fund, joined by Massimo Fabio Puccio (ex Vestar and SocGen), Stefano Costa (ex Deutsche Bank and Goldman Sachs), Reza Shahrbabaki (ex Alix, McKinsey and Fiat), Aldino Bellazzini (ex Selenia, Sparco e Petronas Lubricants) and Fabio Labruna (founder of Labruna Mazziotti Segni law firm).
Eukedos spa, listed on the Italian Stock Exchange since 2006 as Arkimedica, is one of the leading Italian groups in the managed care segment. The divestment was a necessary step for Eukedos as part of its debt restructuring agreement with its lenders and thanks to this sale the company is now able to repay its lenders one year before its debt maturities. Eukedos”s bankrupcy procedure started in May 2012 when the actual controlling shareholder Arkigest srl (owned in turn by Eukedos’s chairman and ceo Carlo Iuculano) bought control of the company.