Sts Medical Group announces the acquisition of Luigi Salvadori s.p.a.

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Press release

Sts Medical Group announces the acquisition of Luigi Salvadori s.p.a. and enters the italian specialized medical gauze and surgical customized procedural kits market. Following the acquisition of Luigi Salvadori s.p.a., the present Salvadori s.p.a. Shareholders invest in Sts Medical Group and mr. Luigi Salvadori becomes Board Bember and strategic advisor of Sts Medical Group and honorary President of Luigi Salvadori s.p.a. Sts Medical Group establishes one of the largest and most technologically advanced production hubs for medical devices in eastern europe: the Bulgarian Manufacturing Hub.

 

MILAN [April 2015] STS Medical Group – an international group specialized in the production and distribution of medical devices and surgical customized procedural kits (CPTs) – announces the acquisition of Luigi Salvadori S.p.A., an Italian company based in Florence, operating in the market of specialized medical gauze and surgery kits.

STS Medical Group is an investment vehicle established under the initiative of Augusto Orsini and Monitor Clipper Partners. Augusto Orsini, an executive with 25 years of experience in the medical devices industry, is the Chief Executive Officer of STS Medical Group. Monitor Clipper Partners is a Boston, MA and Zurich, Switzerland–based independent private equity firm formed in 1998. Monitor Clipper Partners has invested in over 40 businesses in North America and Europe, focusing primarily on partnering with founders and owners of middle-market companies. The firm provides strategic and operational support aimed at fundamentally transforming the franchise value of its portfolio companies. Monitor Clipper Partners has invested approximately $ 2 billion in equity since its formation.

“The transaction represents an important step for the development of STS Medical Group in Europe, with a twofold strategic value: first, it enables STS Medical Group to enter directly the Italian market of medical gauzes and surgical customized procedural kits (CPTs), where Luigi Salvadori historically enjoys a position of leadership, an important market share and a capillary distribution network. Second, it enhances our production capacity in Sandanski, Bulgaria, where STS Medical Group now benefits from one of the largest and most technologically advanced production hubs for medical devices in Eastern Europe with 900 employees” said Augusto Orsini, CEO of STS Medical Group.

“The strategy of STS Medical Group is geared towards a path of growth through acquisitions, and then driving sales and operating performance at those acquisitions …” added Stephen A. Lehman, partner of the private equity fund Monitor Clipper Partners. “… We aim to expand the presence of STS Medical Group in Europe by doubling current revenues and therefore, becoming one of the leading players in the industry of medical devices for surgery”.

Luigi Salvadori, former shareholder and CEO of Luigi Salvadori S.p.A., declared “I am glad that Salvadori Group, after years of development and profit improvement can continue its expansion together with a large International Group. I am also proud to become investor, board member and strategic advisor of STS Medical Group. I am joining a group with a great reputation and ambition to grow globally for the benefit of Luigi Salvadori, its employees, customers and suppliers”.

STS Medical Group was advised on Italian corporate law matters by Giancarlo Capolino Perlingieri, Maria Pia Carretta and Valentina Ciocca of the law firm CP-DL Capolino Perlingieri & Leone, on Bulgarian law matters by Katerina Kraeva, Rebeka Kleytman and Julia Haralampieva of the law firm Wolf Theiss, on Luxembourg law matters by Catherine Baflast and Soledad Pascual of the law firm MNKS, on Italian tax matters by Guido Petraroli and Paolo Ruggiero of the law firm Fantozzi &

Associati Studio Legale e Tributario and assisted on accounting matters by Alberto Franzone, Luca Barzaghi and Angelo Carella of Alvarez & Marsal. The shareholders of Luigi Salvadori S.p.A. were advised on Italian corporate law matters by Daniele Raynaud, Jessica Fiorani and Gloria Manunza of the law firm Raynaud and Partners, assisted on fiscal matters by Luigi Fazzini of Fazzini & Associati and assisted on financial matters by Carlo Luigi Rossi of Kontiki Merchant Partners.

STS Medical Group, established in October 2012, is among the principal European players in the medical device industry with a consolidated turnover of approximately € 65 million in 2014 and 900 employees.

Business lines – STS Medical Group operates in four main lines of business: surgical customized procedural kits (CPTs), CPT components such as drapes, gowns and gauze, protective clothing and medical devices for surgical theatres in public and private hospitals, as well as for healthcare facilities, local health services, nursing homes, wholesalers, and pharmacies.

Operating Companies – STS Medical Group operates through Sengewald, MSP Schmeiser, Texsan, Salvadori and Salvamed and from Italy, Germany and Bulgaria reaches all the main European markets. Out of the four production plants, two are located in Germany and two in Sandanski, Bulgaria, where STS Medical Group now benefits from one of the largest and most technologically advanced production hubs for medical devices in Eastern Europe.

Shareholding – STS Medical Group is mainly funded by Monitor Clipper Partners, a Boston, MA–and Zurich, Switzerland–based independent private equity firm formed in 1998, which focuses on partnering with founders and owners of middle-market companies. The firm provides strategic and operational support aimed at fundamentally transforming the franchise value of its portfolio companies. Other investors include the management (Augusto Orsini and Dieter Gruber) and strategic advisors (Luigi Salvadori).

The Market – The European market for surgical customized procedure trays (CPTs) amounted to, in 2014, to approximately $ 800 million and is expected to grow up to 10% yearly, due to the increase in the ageing population and treatable diseases. Every year, over 250 million complex surgical operations take place worldwide. Surgical CPTs is a segment of CPTs.

The Global market for procedural kits (CPT) is expected to grow to $ 21,9 billion in 2015. The United States, however, is the country with the highest rate of use of procedural kits (80%). Northern Europe continues to dominate the CPT market accounting for 74% of the revenue, with more than

$ 570 million in 2014. Countries such as Italy and Spain, contribute to the market with approximately 10% of market share and show good opportunities for growth compared to the rest of Europe where CPTs are more established (13% of market share in the UK, 17% in Germany, and 12 % in France).

 

Contacts:

Augusto Orsini, C.E.O. STS Medical Group S.àr.l. – Investor Relations – info@stsmedicalgroup.com – +(49) 172 824 7841

Nadia Di Paola, Exec Asst to C.E.O. STS Medical Group S.àr.l. – Public Relations – info@stsmedicalgroup.com – +(39) 348 706 6989

Marie-Hélène Emond, Board Member STS Medical Group S.àr.l – Luxembourg Office – info@stsmedicalgroup.com – +(352) 264 958 4190

Gaëlle Violette, Board Member STS Medical Group S.àr.l – Luxembourg Office – info@stsmedicalgroup.com – +(352) 264 958 4190

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