Permira acquires Corin from DeA et al.

Kenny Wastell
09 May 2018

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Permira has agreed to acquire UK-based orthopaedic implants company Corin Orthopaedics from DeA Capital, Hunt Capital, IP Investimenti e Partecipazioni and other investors.

Financial details of the transaction remain undisclosed, though Unquote sister publication Mergermarket recently reported that the company generates EBITDA of around £20m from a turnover of £100m. Prior to its delisting in 2013, Corin generated a turnover of £48m and a pre-tax loss of £1.2m.

A source with knowledge of the deal told Unquote the sector typically fetches entry multiples of around 12-13x EBITDA.

Permira drew capital for the transaction from Permira VI, which held its final close in January 2017 on €7.5bn. The fund typically commits equity tickets of between €250m-1bn for companies with enterprise values of €500m-3bn.

Following the deal, the company's management team will continue in their roles and retain a significant stake in Corin.

The GP said it anticipates strong organic growth for the company based on an ageing population, increasing obesity levels and a more active elderly population. It also said it has identified international "organic and M&A growth opportunities".

The transaction comes 19 months after Corin completed the acquisition of Wright Medical Group's hip and knee business in a deal valued at €29.7m.

The acquisition by Permira is expected to complete in July 2018, subject to antitrust approvals.

Permira declined to comment on details related to the deal valuation, company financials and debt package. A spokesperson for DeA Capital declined to comment on the deal valuation, company financials and returns generated from the investment.

Previous funding
Corin first received private equity backing in May 1994, when Bridgepoint and 3i acquired the business in a deal valued at £20m.

The business then floated on the London stock exchange eight years later with a valuation of £38m.

DeA, Hunt Capital and the De Negri family office, IP, invested in the take-private of Corin in January 2013. DeA drew capital drawn from Idea Opportunity Fund I to fund the transaction, which valued Corin at £30.5m. According to Mergermarket, the GP held a 30% stake in the company, with IP also holding a 30% stake.

Company
Founded in 1985 and headquartered in Cirencester, Gloucestershire, Corin is an orthopaedics company that designs and manufactures hip, knee, ankle and shoulder implants.

According to publicly available documents, Corin generated a turnover of £68.4m in 2016, with an operating loss of £10.3m. The Australian market accounted for £16.6m of its sales, with the US accounting for £13.8m, the UK for £9m, and Germany, Italy and Austria accounting for a combined £9m.

People
Permira – Silvia Oteri (partner).
Corin Orthopaedics – Stefano Alfonsi (CEO).

Advisers
Equity – Vitale & Co (corporate finance); Latham & Watkins (legal).
Company – Rothschild (corporate finance); Osborne Clarke (legal).