Embla Medical Successfully Completes Major Share Acquisition
Embla Medical Finalizes Majority Stake in Streifeneder ortho.production
Embla Medical hf, a prominent global provider of innovative mobility solutions, has successfully completed its majority share investment in Streifeneder ortho.production GmbH. This landmark achievement marks a significant milestone for Embla Medical as they expand their influence in the orthopaedic mobility sector.
Details of the Transaction
The completion of this acquisition follows the necessary regulatory approvals, positioning Embla Medical to own 51% of Streifeneder ortho.production. This strategic investment enhances Embla Medical's capabilities, reinforcing its commitment to delivering exceptional mobility solutions worldwide.
Streifeneder ortho.production is well-known in the industry as an international developer and supplier of orthopaedic solutions, employing around 100 skilled professionals. The company’s solid reputation stems from its diverse offerings, which include advanced prosthetic and orthotic components, as well as essential materials and equipment for the orthotics and prosthetics (O&P) sector.
Financial Insights
In the previous year, Streifeneder ortho.production reported impressive sales, reaching EUR 25 million (approximately USD 29 million), with about 70% of these sales derived from its prosthetic and orthopaedic material products. The strong financial performance showcases the company's integral role in enhancing mobility and quality-of-life solutions for individuals around the globe.
As a part of the investment strategy, Embla Medical's Board of Directors has agreed to utilize an authorization to issue 2,805,135 new shares. This move will raise the company’s total share capital by 0.7%, increasing its nominal value from ISK 427,636,122 to ISK 430,441,257. The pricing for these new shares is set at DKK 33.26, leading to a total capital increase of approximately DKK 93 million or EUR 12.5 million.
Commitment to Stakeholders
The sellers of Streifeneder ortho.production have committed to acquiring all the newly issued shares, with a stipulation of a two-year lock-up period for these shares following the closing of the transaction. This solidifies a strong collaboration between Embla Medical and Streifeneder ortho.production, ensuring that the interests of all stakeholders are safeguarded.
Future Outlook
Management anticipates that this acquisition will not lead to any significant alterations to the financial guidance for the upcoming year. The strategic expansion into the orthopaedic market is expected to bolster Embla Medical's position and provide better service solutions to its clientele.
About Embla Medical
Founded in Reykjavik, Embla Medical operates with the primary mission of enhancing the mobility of individuals. The company's portfolio features renowned brands known for their substantial positive impact on health and well-being, including Össur, a leader in prosthetics and bracing solutions, FIOR & GENTZ, which specializes in innovative neuro orthotics, and College Park Industries, known for custom-built prosthetic solutions.
Embla Medical prides itself on delivering world-class service through a network of top-tier Orthotic and Prosthetic (O&P) facilities and is deeply committed to sustainable practices. Their adherence to global compacts and initiatives underscores their dedication to long-term environmental and social accountability.
Frequently Asked Questions
What is the significance of Embla Medical's acquisition?
This acquisition strengthens Embla Medical's position in the orthopaedic mobility sector, enhancing its product offerings and market share.
How many shares did Embla Medical issue for this investment?
Embla Medical issued 2,805,135 new shares to finance the acquisition, raising their total share capital.
What are the financial expectations following this acquisition?
The transaction is not expected to have a significant impact on Embla Medical’s financial guidance for the upcoming year.
Who are the key players at Embla Medical?
Klaus Sindahl serves as the Head of Investor Relations and Edda Heidrun Geirsdottir is the VP of Corporate Communication.
When was Embla Medical founded?
Embla Medical was founded in 1971 and has established itself as a leader in enhancing mobility solutions globally.
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