Ergon Capital buys Palex Medical from Corpfin

The deal gives the company an EV of around €150m, which is equal to 7.9x its 2018 EBITDA, Unquote understands.

Ergon bought a majority stake of around 70-75%, while Corpfin reduced its stake from 55% to around 15%. The company's management reinvested alongside the GPs and retained the remainder.

To finance this deal, the GP deployed capital from Ergon Capital Partners IV fund. The vehicle closed on €580m in March 2019, surpassing its €500m target, and is now around 45% deployed, Unquote understands. In addition, a debt package of an undisclosed amount will be provided to support the acquisition.

Corpfin acquired a stake of around 55% in Palex in August 2016 via its €255m Corpfin Capital Fund IV, while the founding family retained the remainder.

Under Corpfin's ownership, the company increased its turnover from around €107m to €190m and completed two add-ons by acquiring Iberian hospital business Taper Group and Cymit Química, an online trading platform for chemical reagents and bio-research.

Company
Founded in 1955 and headquartered in Barcelona, Palex Medical manufactures equipment and machinery for the healthcare industry. The company generated EBITDA of around €19m from revenues of €190m in 2018. It employs approximately 400 staff.

People
Ergon Capital – Emanuele Lembo (partner).

Advisers
Equity – Houlihan Lokey (legal).

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• Topics
• Buyouts
• Southern Europe
• Healthcare
• Ergon Capital Partners
• Corpfin Capital
• Spain
• Houlihan Lokey