Shares of Poly Medicure Ltd (Polymed) traded flat on 4th September after touching a day’s high of Rs 2,144.90, despite the company announcing that it has signed definitive agreements to acquire a 90% stake in Netherlands-based PendraCare Group, comprising PendraCare Holdings and Wellinq Medical, from Wellinq Holdings BV at an enterprise value of Rs 188.5 crore (€18.3 million). The remaining 10% stake will be acquired in 2030 based on the actual EBITDA of CY2029.

PendraCare Group develops and sells innovative cardiology catheter solutions. It also offers design, development, and manufacturing services to global OEMs. The acquisition will help Poly Medicure (Polymed) expand its cardiology business globally. This gives it immediate access to regulated markets in Europe and the US.

As one of the few independent cardiology consumables businesses in Europe, PendraCare aligns well with Polymed’s strategy. They strengthen their cardiology segment through strong R&D and manufacturing. Its products already have approvals from regulators such as Europe’s MDD and MDR, the US FDA, ANVISA, CFDA, and KFDA, among others. The deal also gives Polymed a European manufacturing base and access to established ties with large global med-tech OEMs.

Polymed expects €3–4 million in annual synergies over the next 3–4 years. This will leverage its R&D, expand distribution, use PendraCare’s OEM partnerships, and boost its presence in Europe for new and existing products.

Financially, PendraCare reported revenue of €9.9 million in CY2024. It had €7.3 million in gross profit, €1.4 million EBITDA, and €801,000 profit before tax. The deal values the company at 1.83x EV/Revenue and 13x EV/EBITDA.

PendraCare’s existing management will continue to run the business, with CEO Sander Hartman keeping a 10% non-voting stake until 2030. Additional earn-out payments will depend on performance milestones. The acquisition, subject to approvals, is expected to close in 4–8 weeks.

At 12:33 PM, the shares of Polymed were trading 0.0097% lower at Rs 2,066.80 on NSE.

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