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Elos Medtech acquires Klingel Medical

Elos Medtech has entered into an agreement to acquire Klingel Holding from IK Partners and management.

Klingel, a leading contract development and manufacturing organization (CDMO) headquartered in Germany, will strengthen Elos Medtech’s position with extraordinary R&D capabilities and new technology expertise, the company states. Further, the acquisition will broaden the product offering and add new high profile global customers, contributing to a strong footprint in the DACH region.

An enterprise value of EUR 370 million

The purchase price corresponds to an enterprise value of EUR 370 million. The completion of the transaction is subject to customary regulatory approvals, acceptance at the extraordinary general meeting and successful completion of a rights issue to finance the acquisition. The rights issue will be guaranteed through the subscription and guarantee undertaking of TA Associates, through EM Intressenter AB, ElosMedtech’s principal shareholder.

Closing is expected to take place during the fourth quarter of 2023.

“It strengthens our position in the CDMO landscape”

With this acquisition, Elos Medtech will gain eight production facilities in Germany and Switzerland, along with R&D capabilities, technological expertise, and an extensive global customer base. Klingel has approximately 900 employees with similar beliefs and culture to the Elos Medtech team.

The acquisition shows Elos Medtech’s strong commitment to enhancing its share in its core markets and the ambition to expand in U.S.A., unlocking opportunities to drive future growth, the company states. With Klingel’s expertise, Elos Medtech will also be equipped to leverage R&D capabilities across various business units and proprietary products, enabling it to better cater to the unique needs of international OEM customers.

“We firmly believe that this acquisition strengthens our position in the CDMO landscape. It marks a significant step forward in our commitment to offering an extensive array of services to our customers through the hard work of a talented combined workforce. The acquisition will reinforce our well-established reputation for excellence and our ability to cultivate enduring partnerships, aligning seamlessly with Klingel’s similar ethos. It is important that we build on the heritage of these businesses and, as per the last 100 years, remain dedicated to investing in our teams; all of whom are paramount to our success and a real point of differentiation. We are also committed to acquiring and developing cutting-edge technologies to provide our customers with additional capacity and capability. I would like to take this opportunity to thank each and every member of the Klingel and Elos Medtech teams for all their hard work and dedication to date. We strive to be the expert our customers can rely on, so that they can focus on growing their businesses,” says Stefano Alfonsi CEO and President of Elos Medtech.

Photo of Elos Medtech production site

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