Poly Medicure to Acquire Citieffe

Poly Medicure signed a definitive agreement to acquire a 100% stake in Medistream consisting of Citieffe and its subsidiaries in the U.S. and Mexico, at an enterprise value of INR 324 Crores (~USD $36.2 million). Citieffe is an Italy-based manufacturer specializing in the orthopaedic trauma and extremities segment with a direct presence in Italy, the U.S., and Mexico, and distribution across 25+ countries. The company generated revenues of €17.3 million (~$20.2 million) in 2024, reflecting year-on-year growth of 15%.

This strategic acquisition provides Poly Medicure with an entry point into the large global orthopedic market, particularly in the trauma and extremities segment.

Strategic Rationale for Acquisition:

• Differentiated portfolio: A diverse, fully accredited and patented portfolio of trauma & extremity products. Citieffenhas 45 patents and full EU MDR clearance and accreditation in key markets like the U.S.
• Global Presence: Direct sales presence in Italy, the USA, and Mexico.
• Integrated Business Solution: Citieffe has inhouse capabilities from product R&D to manufacture to sales and distribution.
• Growth Potential: A resilient and profitable business in a growing orthopaedic segment (Trauma & Extremities) with ability to enter orthopaedics adjacencies through strong in-house R&D. Also offers significant potential to scale-up U.S. business wherein product pricing also is higher as compared to other geographies
• Synergies: Boost financial performance by leveraging Polymed’s manufacturing expertise and global distribution network.
  • Product portfolio expansion through addition of Plates in near term. Also, plan to enter joints replacement market in medium term
  • U.S. expansion by hiring more sales reps in the U.S. to bolster coverage in largest ortho market wherein prices are also premium to Europe
  • Outsourcing parts of manufacturing process to India could help in reducing cost of product thus boosting margins
  • Introduce Citeffe products in India and expand by leveraging Polymed extensive network
  • Expansion of distribution network through leveraging existing Polymed global distribution network can not only help deepen presence in Europe but expand to other countries globally

Transaction Structure Overview:

• Existing Management to continue post transaction; Mr. Pascal Govi to continue as CEO
• Acquiring 100% of the company (majority stake with Archimed; a Europe based healthcare focused PE fund)
• The acquisition is subject to customary closing conditions and approvals and is expected to be closed in next 4-8 weeks

Commenting on the acquisition, Mr. Himanshu Baid, Managing Director, Poly Medicure Limited stated, “This acquisition marks another step in our journey to become a comprehensive healthcare solutions provider. Citieffe’s strong R&D capabilities and diverse trauma & extremity portfolio aligns with our mission to deliver innovative, patient-centric technologies. Together, we will be able to accelerate the expansion into orthopaedics adjacencies and expand reach to more patients globally. Citieffe has direct sales operations in the U.S., Italy, and Mexico providing us a deeper foothold in these key markets. We see synergies in combining Citieffe’s innovation pipeline with Polymed’s manufacturing scale and commercial reach—this is about creating long-term value for healthcare providers, patients, and our stakeholders”

Commenting on the acquisition, Mr. Pascal Govi, CEO, Citieffe stated, “It has been a pleasure to work with ARCHIMED, who always acted as a responsible shareholder, notably during Covid times. Their commitment to invest in a stronger organization, international development and innovation was key to reinforce the strategic positioning of Citieffe. The company was well prepared for attracting a leading Medtech company such as Polymed. I’m enthusiastic to start a new venture with a group sharing a common culture and vision.”

Source: Poly Medicure Limited