Handicare divests Patient Handling division as Direct Healthcare Group’s European presence swells
Handicare Group AB has entered into an agreement to divest its Patient Handling operations in Europe and the Rest of World markets, excluding North America, to Direct Healthcare Group.
According to Handicare, the transaction amounts to approximately €30 million (£26.2 million) on a cash and debt free basis (Enterprise Value) and is expected to close in May.
Patient Handling Europe offers a wide range of transfer, repositioning and lifting aids that simplify patient transfers within the institutional and home care settings. The division consists of 87 employees and sales of €27 million (£23.5 million) in 2019, corresponding to 11 per cent of Handicare’s total sales during the same period.
The move comes as Swedish mobility powerhouse Handicare continues to streamline its business operations and UK-based Direct Healthcare Group continues its strategic growth into more European markets.
Handicare confirmed the divestment is a result of a strategic review announced in connection with the Q3 report 2019 which concluded the company should focus on the development of its stairlift operations, along with the ongoing restructuring of Patient Handling North America with the aim to restore profitable growth.
It follows the company’s decision to divest all the shares in Danish company Handicare Auto A/S to Auto Solutions ApS in December 2019.
“The sale of Patient Handling Europe provides resources we can deploy to further strengthen and expand our market leading position within the global and highly attractive Accessibility niche market,” commented Staffan Ternström, President and CEO of the Handicare.
“With regards to Patient Handling North America, we will continue the ongoing restructuring program with focus on growth and to streamline operations. Accessibility has limited synergies with Patient Handling Europe, while there are more synergies with Patient Handling North America, especially within our home care offering.”
According to Direct Healthcare Group, the purchase of Handicare’s Patient Handling division will significantly broaden its offering, providing healthcare providers solutions across the 24 hours of care; from bed to bedside, and now further.
With the acquisition, Direct Healthcare Group says it will be able to deliver Intelligent Pressure Care Management, Specialist Seating, Bariatric Care and Safe Moving & Handling into a wider market space and across a broader patient population.
Graham Ewart, CEO at Direct Healthcare Group, said: “The acquisition of Handicare Patient Handling Europe represents a key strategic step in delivering our clinically proven, market-leading Pressure Care Management and Specialist Seating portfolios into wider European markets presently serviced by Handicare. With the addition of Patient Handling Europe, we can encourage even safer, earlier mobilisation and recovery across a broader patient population. This will continue DHG’s more than decade-old history of achieving better health outcomes and economic efficiencies for those who would otherwise be bed bound.”
The acquisition continues to provide strategic growth into more European markets for Direct Healthcare Group, including direct sales teams in Sweden, Norway, Demark and the Netherlands; whilst further strengthening DHG’s position in the UK.
Erik Østby, current EVP Patient Handling Europe & RoW, will continue to lead the commercial operations for the Patient Handling division.
Erik Østby commented: “From the first day I met DHG and ArchiMed, I felt a strong cultural fit and we have a lot of values in common. Particularly as it is the desire of both of our companies to enable movement and therefore faster recovery and greater outcomes. It is clear that there are strong synergies from a product, market and channel perspective.”
The closing of the transaction is not conditional upon any regulatory approvals or other external conditions and requires only Patient Handling Europe to be carved out from the other operations of Handicare.
Direct Healthcare Group’s second purchase in just over a month, having recently acquired Swedish rehabilitation aids specialist GATE Rehab Development AB in March 2020, the move continues the Caerphilly-based company’s renewed M&A strategy since its acquisition by ArchiMed in December 2019.
At the time, ArchiMed, a leading European private equity healthcare specialist, confirmed it would provide €150million for Direct Healthcare Group to invest in strategic acquisitions, with a particular focus on European expansion.https://thiis.co.uk/handicare-divests-patient-handling-division-as-direct-healthcare-groups-european-presence-swells/https://i2.wp.com/thiis.co.uk/wp-content/uploads/2020/04/Handicare-divests-DHG-acquires.jpg?fit=850%2C567&ssl=1https://i2.wp.com/thiis.co.uk/wp-content/uploads/2020/04/Handicare-divests-DHG-acquires.jpg?resize=150%2C150&ssl=1Mergers & AcquisitionsNewsroomSupplier NewsTrade NewsAccessibility,acquisition,ArchiMed,Auto Solutions ApS,Direct Healthcare Group,divestment,GATE Rehab Development AB,Handicare Group AB,Patient Handling Europe,Rest of WorldHandicare Group AB has entered into an agreement to divest its Patient Handling operations in Europe and the Rest of World markets, excluding North America, to Direct Healthcare Group. According to Handicare, the transaction amounts to approximately €30 million (£26.2 million) on a cash and debt free basis (Enterprise Value)...Calvin BarnettCalvin Barnettcalvin@thiis.co.ukAdministratorTHIIS Magazine