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Duke Street agrees to sell Medi-Globe Group to DCC Healthcare

London, 08 September 2022: Duke Street (the “firm”), a leading European midmarket private equity group, announces that it has agreed to sell Medi-Globe Technologies GmbH ("Medi-Globe” or the “Business") to DCC Healthcare, a leading healthcare business. DCC Healthcare is a wholly owned subsidiary of DCC plc, the FTSE 100 listed international sales, marketing and support services group. Duke Street will sell Medi-Globe for an enterprise value of approximately €245 million (£213 million).  The transaction is subject to completion authority clearance in Germany and France, with completion expected in Q4 2022.

Medi-Globe is a well-regarded international manufacturer and distributer of medical devices which sells into 120+ countries. The company focusses on single-use accessories for use in critical surgical and diagnostic procedures in the fields of gastroenterology and urology in particular. The business is global, headquartered near Munich, Germany with manufacturing facilities in the Czech Republic and sales and marketing operations in Germany, France, Austria, Netherlands, China, Czech Republic and Brazil. Medi-Globe had group revenues of approximately €120 million (£104 million) in 2021.

Duke Street invested in the business in 2016, following a two-year period of origination focussed on the medical devices sub-sector. The transaction was complex, with a complicated shareholder structure in place, and the deal took close to a year to execute.

Since acquiring the business, Duke Street has backed the highly experienced management team – who will continue to lead the business post-transaction – to execute a strategy based on launching leading new products in its core therapeutic areas, and to consolidate and extend Medi-Globe’s international reach. Together with management, Duke Street’s stewardship of the business has driven significant operational improvement and accelerated growth rates of new products and into new markets. This work was alongside strategic refinement such as the sale of the non-core hospital supplies division Asid Bonz earlier this year to Medline International.

Charlie Troup, Managing Partner at Duke Street, commented:

“We are very pleased to announce the sale of Medi-Globe. Under our ownership, management has delivered a significant transformation across the business, involving investment across R&D, sales and marketing, and manufacturing. The positive development in business quality and growth has been recognised by DCC who see Medi-Globe as a key element of their strategic drive into healthcare.

“Our investment in Medi-Globe represents a classic Duke Street deal: an attractive entry multiple we delivered by seeing through a complex process; working with exceptional management to invest in growing the business swiftly and successfully during our period of ownership; and adding international expansion and securing an exit to trade, taking Duke Street’s recent record to twelve trade sales out of our last fifteen exits.”

Martin Lehner, CEO at Medi-Globe Group, commented:

“Medi-Globe is now performing strongly both financially and operationally, driven by the ongoing successful execution of our growth strategy. Duke Street has been a hugely supportive owner, developing that strategy with us and investing in the key resources to drive our position as a leading player in single-use endoscopy devices for the gastroenterology and urology sectors globally.”

Duke Street is a long-term investor in the healthcare space, making its first investment in 1997, and the firm has an excellent track record in the sector. Since 1997 Duke Street has deployed c €700m in the space, backing great management teams to deliver transformational business plans. Most recently Duke Street acquired Kent Pharmaceuticals and Athlone Laboratories in 2019. Earlier this year Duke Street sold Voyage Care, a sector-leading provider with over 30 years’ experience of specialist care and support, to Wren House, the London-based global infrastructure investment manager.

In May 2021, Duke Street completed the acquisition of COMPO, Europe’s leading provider of bio alternative gardening products, headquartered in Muenster, Germany. The completion of the deal saw Duke Street back a very strong management team as it seeks to build and consolidate COMPO’s position in the industry across Europe. Since the acquisition by Duke Street, COMPO has acquired an additional two businesses: Störk GmbH, a producer of high quality ecologically sustainable products and Heinr. Propfe Chem. Fabrik GmbH, a highly specialised family-owned business that develops and produces innovative fertilisers using natural and organic raw materials.

On the Medi-Globe transaction, Moelis acted as financial advisors, White & Case provided legal advice and PWC, EY-Parthenon and Alvarez & Marsal supported on tax, commercial and financial diligence, respectively.

For further enquiries:

James Devas, Seven Dials City

+44 7885 813 114

About Duke Street

At Duke Street, we have been investing in mature, mid-market Western European businesses for over twenty-five years. Our investment strategy is concentrated on four sectors: Consumer, Healthcare, Industrials and Services. Typically, we invest in companies with an enterprise value of between £50m - £400m. Our investment strategy is based on proactive analysis to identify actionable opportunities to back ambitious management teams to drive real strategic and operational change in their businesses. Together we aim to transform the prospects of the companies that we invest in.

Duke Street has invested over €2.5bn in more than 50 companies over the last 25 years and has achieved strong returns in excess of 25% IRR over that period.

About Medi-Globe

Founded in 1990, Medi-Globe is an international single-use medical devices platform involved in the development, manufacture and distribution of gastroenterology and urology products for use in acute care settings. Medi-Globe has grown organically and through bolt-on acquisitions to become a leading player in single-use endoscopy devices for the gastroenterology and urology sectors globally.

Medi-Globe products are sold to hospitals and procurement organisations in over 120 countries and the business has direct operations in Germany, France, Austria, Netherlands, Czech Rep and Brazil. The products are valued by gastroenterologists and urologists for their high quality, ease of use and competitive pricing.

Medi-Globe employs approximately 600 people and will continue to be led by its current experienced management team from its headquarters in Bavaria, Germany. The business has a state-of-the-art clean room manufacturing facility in Hranice, Czech Republic, an attractive, low-cost jurisdiction. The business has significant R&D capability in Germany and the Czech Republic.

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Last Updated: 09-Sep-2022