As a further step to strengthen its position in the medical segment, Alleima has signed an agreement to acquire Endosmart Gesellschaft für Medizintechnik GmbH (Endosmart), a Germany based manufacturer of medical devices and components made of the shape memory alloy nitinol. The product offering includes kidney stone retrieval baskets and snares, and breast cancer tumor markers, as well as surgical instruments.
Endosmart provides medical device companies with products and services primarily in the fields of urology, oncology, cardiology as well as instruments for orthopedic and vascular applications. The company will be reported within the Kanthal division of Alleima.
"Our strategy is focused on profitable growth, and we see a large potential within the medical industry, which is characterized by high growth and stable earnings. The acquisition of Endosmart further expands our capabilities and increases our current addressable market by adding new products and materials. We look forward to welcoming Endosmart to Alleima", says Göran Björkman, President and CEO of Alleima.
With complementary material technologies and Endosmart's expertise and capabilities in processing nitinol, the acquisition is enabling forward-integration in the value chain of the medical industry. The product and service offering, certifications, and existing customer base of Endosmart expands the current addressable market for Alleima. The combined expertise and footprint will drive further product development and geographical expansion through cross sales between the product portfolios and regions, as well as possibilities of joint utilization of production and application capabilities.
"We have a long-term strategic commitment to grow our medical business. With the acquisition of Endosmart, we will forward-integrate to strengthen our medical wire component offering while adding R&D capabilities that will be leveraged to develop and offer new unique solutions", says Gary Davies, Head of business unit Medical in Kanthal.
Endosmart was founded in 2002, has more than 90 employees and is headquartered in Karlsruhe, Germany. For the rolling twelve-month period ending September 2022, it had revenues of approximately SEK 105 million, and an EBIT margin neutral to Kanthal. The parties have agreed not to disclose the purchase price. Impact on Alleima's earnings per share will initially be neutral.The transaction is expected to close by the end of 2022 and is subject to customary approvals.
- Endosmart product examples - YouTube (https://www.youtube.com/channel/UCV7siJjiD-7u8EcShb2FqdQ)
- Endosmart - Website (https://www.endosmart.de/en/)
- Medical offer at Alleima (https://www.alleima.com/en/industries/medical/) - Website
Sandviken, November 18, 2022
Alleima AB (publ)
Emelie Alm, Head of Investor Relations
Phone: +46 (0) 79060 87 17
Yvonne Edenholm, Press and Media Relations Manager
Phone: +46 (0) 72145 23 42
Alleima AB, formerly Sandvik Materials Technology, is a global manufacturer of high value-added products in advanced stainless steels and special alloys as well as solutions for industrial heating. Based on long-term customer partnerships and leading materials technology, we develop products for the most demanding applications and industries. Our offering includes products like seamless steel tubes for the energy, chemical and aerospace industry, precision strip steel for white goods compressor, air conditioners and knife applications, based on more than 900 active alloy recipes. It also includes ultra-fine wires for medical and micro-electronic devices, industrial electric heating technology and coated strip steel for fuel cell technology for cars, trucks, and hydrogen production. Our fully integrated value chain, from R&D to end-product, ensures industry-leading technology, quality, sustainability, and circularity. Alleima, with headquarter in Sandviken, Sweden and revenues of SEK 13.8 billion in 2021, has more than 5,500 employees and customers in approximately 90 countries. Alleima was listed on Nasdaq Stockholm on August 31, 2022 under the ticker `ALLEI'. Learn more at www.alleima.com (https://www.alleima.com/en/)
Endosmart is an expert in processing the shape memory alloy nitinol and offers solutions and services for medical device manufacturers. Founded 2002, Endosmart provides its knowhow and expertise for customers all over the world. The offer includes an all-round service: conceptual design of ideas - development of prototypes - series production, even in cleanroom environment - and support during the registration process. Applications are found within urology, oncology, cardiology as well as the orthopedic and vascular areas. With more than 90 employees, Endosmart is headquartered in Karlsruhe, Germany. For the rolling twelve-month period ending September 2022, it had revenues of approximately SEK 105 million. Learn more at www.endosmart.de