Safe Orthopaedics entered into exclusive negotiations to purchase its contract manufacturing partner, LCI Médical. The transaction is slated to close in early 3Q20.
Safe Orthopaedics offers ready-to-use implant and instrument kits for spinal surgeries, which are marketed in 24 countries. To meet growing demand, the company seeks to incorporate the entire production value chain from conception, technology, production, distribution and hospital services.
The acquisition will allow Safe Orthopaedics to deploy its expertise in other orthopedic segments through different channels, such as subcontracting for third parties, operating as an original equipment manufacturer or as part of a co-development agreement. LCI's facilities will be equipped to support production for Safe Orthopaedics and to offer LCI's current customers new services and capabilities.
LCI Médical operates two production sites in France and Tunisia. The company posted 2019 revenue of €2.6 million (~USD $2.8 million), of which 30% derived from Safe Orthopaedics. LCI's other customers are device manufacturers in the spine, large and small joint replacement and maxillofacial surgery markets.