New step in Palex's acquisition strategy to become one of the main European groups in technology and equipment for the hospital sector. The Catalan company has announced the purchase of Duomed, a Belgian distributor of medical technology with more than 50 years of experience. The transaction, for an undisclosed amount, is expected to close in the third quarter of this year.
For Palex, based in Sant Cugat del Vallès, the purchase of Duomed must serve to articulate a pan-European platform capable of providing medtech equipment and solutions in northern, southern and western Europe. The resulting group is expected to have a presence in 11 countries and revenues of 950 million euros this 2024. Duomed specializes in endoscopy, surgery, critical care, medical imaging, physiological monitoring and infection control. The agreement contemplates that it will maintain its local identity after the acquisition.
"As a pan-European leader in technological solutions, we are better positioned than ever to collaborate with suppliers from all over the world," says Palex CEO, Xavier Carbonell. "It was of utmost importance to find a forward-thinking and dynamic partner that would enhance our reputation and commitment to providing unparalleled customer service. This partnership achieves all of this and allows our staff and approach to customers and suppliers to remain unaltered," adds Duomed CEO, Frederic Hoffman.
This operation comes shortly after the acquisition of Izasa, from the Werfen group, as well as the Italian companies Burke & Burke and Gada. All these transactions have been supported by the financial muscle provided by its two shareholders, the private equity funds Fremman and Apax Partners. Since Fremman's entry into Palex in December 2021, the company has completed 11 acquisitions in ten countries, which has allowed it to more than quadruple the size of the business.
"We are excited about the acquisition of Duomed, which we consider a highly complementary asset and the next step in creating a pan-European distributor capable of being the highest quality partner for equipment manufacturers across multiple geographies," remarks Fremman Capital founding partner and CEO, Ricardo de Serdio. "Palex is a prominent operator in the medtech distribution space and the combination with Duomed further consolidates its position as a truly unique pan-European platform," complemented Apax partner, Frank Ehmer.
Founded in 1955 by the Knuth family, Palex employs over 900 workers and has a portfolio with more than 150,000 references. Since mid-2023, it has been 50% controlled by the Fremman and Apax Partners funds. The Knuth family, which is now no longer associated with the company, opted in 2016 to allow private equity to enter with the aim of accelerating the group's growth plans and international expansion.
The first financial partner was Corpfin, who 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. In 2022, Freeman reinvested in the company by subscribing to a capital increase that also allowed the British fund Apax Partners to enter.