EQT has sold medtech group HTL Strefa to Investindustrial, which plans to merge business with PIC, the healthcare business of portfolio company Artsana.
Following the the deal the Catelli family, who founded Artsana and brought in Investindustrial as backers in 2016, will stay on as minority shareholders in the new entity, which will be chaired by Artsana’s incumbent chief executive Claudio De Conto. Mikkel Danvold will remain as HTL’s chief executive.
Formed in 1994, HTL is credited with being the inventor of the safety lancet – a medical device developed for capillary blood sampling – and is now the market leader in this segment and the number two player in personal lancets.
In 2014, HTL also entered the high growth safety and non-safety pen needles and lancing devices market, where it has enjoyed steady growth.
The company has annual sales in excess of €80m and has offices in Zurich, Warsaw and Atlanta.
EQT first backed HTL in 2009, investing from its EQT V vehicle. During its hold revenues doubled to current levels, as has adjusted Ebitda. The business is now growing at 4x historic growth rates.
“HTL has undergone an extraordinary transformation and is today a true global market leader in medical sharp devices. This is especially thanks to the new management team who has done a fantastic job in shaping and executing on the company’s strategy to become a customer-centric innovative medtech company,” EQT partner Mads Ditlevsen said.
Investindustrial believes that combining PIC’s consumer health platform with HTL will form an international player that can offer a full spectrum of highly specialised diabetes management devices across consumer and professional healthcare channels with sales in more than 100 countries and 1,800 employees. The global sharps market in which the merged PIC and HTL will operate, is set to grow at seven per cent a year to €7bn by 2022.
The merger comes after a stragtetic decision to build out Artsana’s PIC healthcare business independently from its well-known baby stroller brand Chicco.
Unicredit provided debt for the deal. Investindustrial has invested in the transaction from its Investindustrial VI vehicle and was advised by Studio Chiomenti, Wardynski, McKinsey, Lazard, PwC, Willis and Golder Associates. JP Morgan, Kirkland & Ellis and EY advised EQT and management.