PAI buys stake in Amplitude from Apax

PAI had entered into exclusive negotiations with Apax to acquire a majority stake in the orthopaedics manufacturer in July.

Apax sold its entire holding to PAI, amounting to 19,799,596 directly or indirectly held shares, which represent a 41.4% stake of the share capital.

Following the deal, Amplitude CEO Jallabert will reinvest in the business retaining a stake of around 10.4% and will remain involved in the management of the company.

The acquisition has been made via Auroralux, a special-purpose vehicle controlled by PAI, at a price of 215 cents per share. Following the transaction, PAI will hold a total of 25,010,557 Amplitude shares.

After completion of the deal, which is expected in Q4 2020, Auroralux will file a simplified public tender offer for all of Amplitude's outstanding shares, as well as all free shares that would potentially be issued, at a price of 215 cents per share.

Auroralux intends to implement a mandatory squeeze-out following the public offer, should the company's minority shareholders who do not tender their shares to the offer represent less than 10% of Amplitude's shares and voting rights.

The deal ends a nine-year holding period for Apax, which acquired a majority stake in the business from Weinberg Capital Partners and Initiative & Finance via its €700m eighth fund. Under Apax's ownership, Amplitude's revenues doubled and its EBITDA nearly tripled.

Previous funding
Amplitude was first backed by institutional investors in September 2004, when Initiative & Finance invested €12m to acquire a minority stake in the business.

Weinberg acquired a 53% stake in the company in June 2008, investing alongside founders Olivier Jallabert and Bruno Saint Paul, and Initiative & Finance.

Subsequently, Apax France bought out Weinberg and Initiative & Finance in June 2011. The SBO, valuing Amplitude in the €100-125m range, was the second to be financed via Apax's eighth fund. 

The transaction was further supported by a senior debt package thought to represent around 40% of the deal value, and a mezzanine tranche provided by CIC Mezzanine Gestion and Idinvest Private Debt.

Amplitude Surgical floated on Euronext Paris in June 2015, with a €234.6m market cap. Following the IPO, Apax reduced its stake in the business from 84.91% to 41.4%.

Company
Founded in 1997, Amplitude is a prosthesis designer focusing on orthopaedic implants for hips and knees.

Headquartered in Valence, France, the business sells its products in 30 countries and operates via 11 subsidiaries – two in France and nine abroad.

Employing 436 staff, Amplitude recorded EBITDA of €17.5m from revenues of €88.3m in the 2019/20 financial year. The company expects to reach sales of €115m in the 2020/21 financial year.

People
PAI Partners –  Stefano Drago (partner).
Apax France – Bertrand Pivin (partner).
Amplitude Surgical – Olivier Jallabert (founder, CEO).

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