New step in Palex's ambitious acquisition strategy to become one of the leading European groups in technology and equipment for the hospital sector. Thanks to the financial strength provided by its two shareholders, the private equity funds Fremman and Apax Partners, the Catalan company has just announced the acquisition of Burke & Burke, a company based in Assago (Milan) that will allow Palex to strengthen its position in the Italian market, where in 2022 it already acquired Gada.
Founded in 1976, Burke & Burke is a company specialized in the supply of high-tech equipment for hospital intensive care units, as well as for pulmonology, respiratory physiopathology, and anesthesia areas. With a staff of 80 people, the company previously belonged to Innova Club1 and HAT Technology Fund, among other minority shareholders. According to Palex Group CEO, Xavier Carbonell, this operation is "great news" for the group and represents "an opportunity to continue adding new collaborators to our international expansion project."
The acquisition of Burke & Burke will be carried out through Gada, Palex's Italian subsidiary, which employs more than 200 people and specializes in therapeutic solutions for the treatment of cardiovascular diseases, blood collection, pre-analytics, dialysis, and intensive care. "We are happy that the path undertaken by our company has aroused Gada's interest," said Burke & Burke CEO, Giusto Bonandrini. According to the executive, with Gada, the company will find "the ideal environment to continue growing" and strengthening its market position.
Ignazio Castiglioni, co-founder of the selling fund, HAT Technology, is confident that Burke & Burke, hand in hand with Gada and Palex, "will continue the development path undertaken." "In the post-COVID era, medical technology represents a key sector that has not yet expressed its full potential. Burke & Burke is a solid company, characterized by high technological competence and operating in a strategic sector," he emphasized.
Based in Sant Cugat del Vallès, Palex Group records double-digit annual growth. In 2022, the company invoiced 336 million euros, which represented a 22.6% increase compared to 2021, and its goal is to exceed 400 million this year thanks to acquisitions. In addition to Burke & Burke, this year it has also acquired the Spanish company Medicina Técnica Werkstatte (MTW) and the Portuguese company Isótopos y Derivados (Isoder).
Founded in 1955 by the Knuth family, Palex defines itself as the leader in advanced solutions for healthcare professionals in hospitals and research laboratories in Southern Europe. The company led by Carbonell employs more than 800 people and since last July has been 50% controlled by the Fremman and Apax Partners funds.
The Knuth family, which is now no longer involved with the company, opted in 2016 to bring in venture capital with the aim of accelerating the group's growth plans and international expansion. The first financial partner was Corpfin, which took a majority stake in 2016. Later, in 2020, Ergon Capital took control of the company, with Corpfin becoming a minority shareholder. In 2021, the shareholding changed again, as Ergon and Corpfin sold most of their shares to another fund, Freeman, founded by Ricardo de Serdio, a former partner of the French private equity firm PAI Partners. Last summer, Freeman reinvested in the company by subscribing to a capital increase that also allowed the entry of the British fund Apax Partners, which paid 500 million to acquire 50% of Palex's capital.