Private equity investment for Ottobock as it plans for IPO

Ottobock Healthcare has confirmed that private equity firm EQT will acquire a 20% stake in the company, becoming the first shareholder outside the family in Ottobock’s 98-year history.

This comes after our previous report that the Swedish private equity firm was the leading bidder for a stake in the manufacturer and supplier of prosthetic limbs. Following the agreement, EQT has confirmed the company’s value at EUR 3.15 billion.

80% of Ottobock will remain in the hands of the Otto Bock Holding GmbH & Co. KG, which is wholly owned by the Näder family, after both sides signed the investment agreement on the 24th June.

EQT will also now have a representative on Ottobock’s newly-formed ten-member Supervisory Board.

It has been speculated that Ottobock would look to make a stock market listing following the investment, going public as soon as 2018/2019.

Professor Hans Georg Näder, President of Otto Bock Holding GmbH & Co. KG., said: "We continue pursuing the possibility of an IPO. However, such a step will come later rather than sooner thanks to the partnership with EQT.”

A major European investor in medical technology, EQT convincingly asserted itself against a number of other international top investors in a tendering procedure conducted by investment bank J.P. Morgan.

Marcus Brennecke from EQT said: "Based on EQT’s deep healthcare expertise, we are one of the most active investors in the sector and we will be a strategic partner to Professor Näder, the management and the company. We look forward to working together and contributing to the continued success of Ottobock.”

Within the framework of the ‘Roadmap 22, strategy, Ottobock is pursuing ambitious growth targets in the business areas of Prosthetics, Orthotics, Human Mobility and MedicalCare and in 2016, generated sales of EUR 884.5 million.

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