Nord Holding acquires majority stake in HG Medical

Harriet Matthews
04 September 2020

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Nord Holding has acquired a majority stake in Germany-based orthopaedic surgery implant manufacturer HG Medical.

The deal comprises HG Medical's Germany-based operations and its US-based subsidiary.

HG Medical's Johannes Hagenmeyer and HG Darco Group have sold their shares in the business and were originally majority shareholders, according to a statement. However, Hagenmeyer will remain in his position and has reinvested to hold a stake in the company, while chief operating officer Craig Bluett will be appointed as a managing director and will acquire a stake in the business.

Ronald Grott, a member of Nord Holding's management board, told Unquote that the sale was carried out via a structured auction process that drew particular interest from sponsors, given the fact that the company's management intended to reinvest to hold a minority stake in the business.

Grott added that the GP is set to secure debt from a direct lending fund, but declined to comment further on the financing arrangements.

The deal is valued in the €50-100m range.

Nord Holding generally invests in companies with revenues of €20-500m with EBITDA of €5-15m, deploying equity tickets of €25-50m per deal.

Company
HG Medical manufactures orthopaedic implants for medical technology companies. The company also offers product development services. It is headquartered in Raisting, Bavaria, and its US subsidiary is based in Huntington, West Virginia.

According to its 2018 financial statement, the company reported revenues of €11.4m, compared with €13.6m in 2017. HG Medical expected to generate revenues of €13m in 2019. It employed 84 people in 2018.

People
Nord Holding – Ronald Grott (member of the management board); André Seidel (senior investment manager); David Wössner (investment manager); Konstantin Wilckens (investment analyst).
HG Medical – Johannes Hagenmeyer (CEO); Craig Bluett (chief operating officer).

Advisers
Vendor – Quarton, Lars Veit (M&A).
Equity – Noerr, Holger Ebersberger (legal); Ebner Stolz (financial due diligence); Goetz Partners (debt advisory).