MEDORT continues to build its regional leadership position by acquiring German rehabilitation market iconMeyra

Medort S.A. (Joint Stock Company) headquartered in Lodz, the leader of the orthopaedics and rehabilitation market in Poland, systematically expands into further European countries. After acquiring the market leader in Hungary in 2011, now in October 2013 Medort acquired Meyra Ortopedia, the leading rehabilitation products player in Germany . In parallel Medort enjoys dynamic growth in its international markets, in particular Russia. . Avallon, Medort’s main shareholder, supported this transaction.

“The acquisition was a great challenge to us. Meyra is a brand of 80 years of tradition, an industry icon recognised throughout Europe and on global markets. They export their products to over 60 countries. The French market is the most important export market to Meyra. Owing to the investment, Medort is now joining the global premier league, new opportunities for development are being opened up, in particular opportunities to extend the portfolio of ‘premium’ products on the largest orthopaedic and rehabilitation products market in Europe, that being Germany, and access to a new channel of distribution of products in Europe” – says Michał Perner, Vice-President of the Management Board of Medort S.A.

Company Meyra Ortopedia is the rehabilitation equipment sales leader in Germany. Meyra is a global brand of products associated with excellent quality wheelchairs for children and adults, including battery-powered wheelchairs. It is also one of the leading companies systematically developing innovative and complete products for disabled persons. Currently, the Company employs 240 people at manufacturing plants located in North Rhine-Westphalia as well as several dozen employees at its divisions abroad. Company’s annual revenues from sales in recent years have exceeded 250 million Polish zlotys.

To Medort, acquisition of Meyra means a significant step in the implementation of its long-term plans. Within the framework of the adopted development strategy, Medort Group is reinforcing its leading position in the orthopaedics and rehabilitation industry in Central and Eastern Europe, effectively implementing the strategy by means of acquisitions of the industry leading companies and development of wholesale companies in Poland, Hungary and the Russian Federation.

„Company Medort wishes to develop its sales on the Western European market and acquisition of a renowned manufacturer of rehabilitation equipment may provide excellent support to the business strategy pursued by Grupa Medort while providing us with access to high technology, patents and solutions which Meyra has been developing for decades. Financially-wise, in the coming 5 years we are aiming at the Group achieving a scale of operation at the level of 100 million Euros” – adds Michał Perner.

MEDORT is an example of a family-owned company which – based on innovative products it develops (for instance, MEMO prophylactic footwear for children, Qmed orthoses or MTB active wheelchairs) – is signifying its presence on international markets without any complexes in that respect. In 2007, the Company got a financial investor – Avallon Fund of Lodz – which contributed to the increasing of the Company’s development dynamics.

“We are most pleased with the investment and collaboration with the Management Board. Since 2007, MEDORT has tripled the value of its sales and increased the level of results generated several times.From a local company it has turned into an industry leading entity recognised not only in our CEE region but also beyond it. All that means consistent implementation of the plan adopted at the beginning of our investment. Both to us and to Medort managers acquisition of Meyra is not only a great opportunity to take several leaps forward at one go but also a great challenge. All in all, it is a global brand and an absolutely different scale of business” – said Robert Więcławski, a Partner of Avallon Fund.

Medort SA (Joint Stock Company) has been operating since 1988 and has been the first privately-held company manufacturing orthopaedic equipment in Poland. At present, Grupa Medort is the leader of the rehabilitation and orthopaedic equipment market in Poland. The Group offers the widest in Poland portfolio of orthopaedic products and uses an extensive sales network covering more than 60 company-owned as well as partner-owned medical product sales outlets operating in Poland. Grupa Medort concentrates entities operating in Poland, Hungary, Russia and Germany. Grupa Medort brand portfolio comprises Vitea Care, Qmed, Memo, Inflex and Parapodium. www.medort.com.pl www.mdh.pl

Avallon MBO FUND – Avallon Avallon is the pioneer of the management buyout market in Poland, operating in the domain since 2001. At the moment, the Fund manages another private equity fund of target capitalisation of more than 100 million Euros. Fund investors include international financial institutions, among others: the European Bank for Reconstruction and Development. The Fund invests in different lines of business, primarily in companies of turnover from 50 to 250 million Polish zlotys. In total, the Fund has so far invested approx. 50 million Euros, inclusive of the 2013-finalised acquisitions of Velvet Care from Kimberly-Clark and of ORE from Telekomunikacja Polska.