Ossur hf. (ICEX: OSSR), a trusted and leading
global supplier of orthopaedic devices, announced today that it has acquired the Gibaud Group in France in a
transaction valued at approximately USD 132 million (Euro 101 million). The Gibaud Group is a local leader in the
design, production and distribution of medical devices used in the non-invasive
orthopaedics sector, specializing in bracing, soft goods and compression therapy
products (phlebology). The transaction
closed today and Ossur will take over the operations of the Gibaud Group with
This is 0ssur´s second largest
acquisition to date, and is in line with Ossur´s strategic growth plans in the
non-invasive orthopaedics industry.
Commenting on the transaction,
Ossur’s President & CEO Jón Sigurdsson stated:
“This acquisition is a milestone
acquisition for us and in line with our strategy of consolidating the bracing
and the soft goods segment of the non-invasive orthopaedics market on a global
level. We are also entering a new and important segment of the non-invasive
orthopaedics market in Europe, the phlebology segment, which is synergistic with the other non-invasive
orthopaedic businesses in Europe.”
Gibaud’s main product lines are
braces & supports and compression therapy products. The bracing and support
market in France is estimated to be valued at approximately USD 130 million.
Gibaud Group is the second largest player with a market share in excess of 20%.
The phlebology market is a new market segment for Ossur. The local French market
is estimated to be valued at more than USD 130 million. The Gibaud Group holds more
than 10% of the market and is the third largest player on the market. Gibaud’s
current product lines, strong market position, knowledge and experience will increase
Ossur’s opportunities in Europe, especially in southern Europe.
benefits of the acquisition of the Gibaud Group:
to a strong brand in France dating back to 1890
to a strong sales network with comprehensive and nationwide coverage
into a new dynamic product segment, phlebology
Gibaud was established in 1890 and
employs 361 people. The company operates two production facilities, one in
Saint Etienne and a most recent one in Trevoux (north of Lyon) specialized in
manufacturing phlebology products. Gibaud manufactures and sells orthopaedic devices which are used to
manage a wide range of conditions, in private practices, hospitals and
self-medication. Gibaud also manufactures specialist devices for use in compression
therapy, rheumatology, traumatology or emergency treatments. Gibaud
is one of the most recognized brands by orthopaedy/medical professionals in
France, as well as a household brand for the general public. The majority of
sales is through pharmacies and orthopaedic outlets.
The Gibaud Group employs more than 65 people directly in sales. The group sells
to more than 10.000 pharmacies in France.
Effective as of today Mr. Philippe
Laratte, former COO of the Gibaud Group will be appointed as a Managing
Director of the group.
“We are excited about this
opportunity to work with Ossur as a strategic partner to expand our business in
France and throughout Europe. This is also an excellent opportunity to leverage
the Ossur products into our sales channels,” stated Philippe Laratte.
For the fiscal year ending 30 June
2006, the total sale of Gibaud were €41,7 million and the
EBITDA margin 21%. One time
restructuring expenses of €5 million are expected in 2006 plus
an estimated €2 million in inventory step up in 2007. Sales in 2007 are
expected to be in the range of €44 million and EBITDA without one time expenses
and inventory step up around 18%. Gibaud will form part of the consolidated
group accounts, even though it will not be integrated into the Ossur
consolidation in the same way as previously acquired companies. It will be
operated more as a stand-alone unit at least for the next 18-24 months and
therefore limited synergies are expected to be realized during this period.
The seller of Gibaud is a
consortium of private equity funds, led by Barclays Private Equity. The
consortium acquired Gibaud in 2001.
Banc of America Securities
Limited advised Ossur on the transaction. Kaupthing Bank advised on the financing of the
acquisition and provided Ossur with a bridge loan facility. An equity offering is
planned to take place during the first half of 2007 to take out the bridge loan
facility and to finance future acquisitions.
on Ossur operational outlook 2006
sales for the year are still expected to be above 250 million US dollars. Earnings before interest, tax, depreciation and amortization
(EBITDA) for the full year is expected to be approximately 19%
(excluding restructuring expenses). This is slightly below the expected EBITDA
of 20% communicated after closing of the third quarter of 2006.
conference call to explain the acquisition will be held today, Friday December 22nd . During the conference
call, Jon Sigurdsson, President and CEO, and Hjorleifur Palsson, CFO, will
present and discuss the key aspects of the acquisition.
The conference call will be held in English at
13:00 GMT, 14:00 CET
and 9:00 a.m. Eastern Standard Time.
The conference call can be heard on the Ossur website: www.ossur.com.
Please call the
following telephone numbers to participate in the conference:
Telephone number for Europe: +44 (0) 20 7162 0125
Telephone number for the
+1 334 323 6203
Queries can also be sent
to the meeting by e-mail to firstname.lastname@example.org
material will be available on the Company’s website www.ossur.com and the
News System of the Iceland Stock Exchange www.icex.is.
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Jón Sigurdsson, CEO tel. +354-515