Ideal Medical Products (France) - Nov 2007

unquote
01 November 2007

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US-based private equity firm Healthpoint Capital has acquired more than 61% of Euronext-listed Ideal Medical Products (IMP). The private equity firm, which focuses exclusively on the musculoskeletal sector, is not using debt to finance this public-to-private transaction. Healthpoint is offering to acquire around 3.5 million shares from minority holders at a unitary price of €21.56, and 2.15 million shares from the company’s CEO at a lower price of €19.72. This leads to a blended market capitalisation for IMP of €71.5m. After the delisting, Healthpoint will sell IMP’s hospital engineering services back to its CEO and retain Scient’X, a spinal implants maker which accounts for approximately 52% of IMP’s turnover. In 2004, Healthpoint Capital invested €24.4m in Scient’X, in return for a third of the company’s equity, with the remainder being held by IMP.

Company

Founded in 1987, Scient’X designs, manufactures and distributes a range of innovative spinal implants. The company has recently received FDA approval for its leading product, a cervical disk implant. Scient’X intends to boost its sales and marketing teams in the US, and to strengthen its R&D capabilities, notably by hiring new surgeons and improving its data management. IMP generated revenues of €58.7m in 2006, 51.8% of which was contributed by Scient’X.

People

John McCormick is in charge of the investment for Healthpoint Capital. Olivier Carli is Ideal Medical Products’ CEO.

Advisers

Equity - Rothschild, Laurent Buiatti (Legal)

Sourced from: France unquote" 88 (Feb 2008)