Medical Technology UK

As a further step to strengthen its position in the medical segment, Alleima has signed an agreement to acquire Endosmart Gesellschaft für Medizintechnik GmbH (Endosmart), a Germany based manufacturer of medical devices and components made of the shape memory alloy nitinol. The product offering includes kidney stone retrieval baskets and snares, and breast cancer tumor markers, as well as surgical instruments.

Endosmart provides medical device companies with products and services primarily in the fields of urology, oncology, cardiology as well as instruments for orthopedic and vascular applications. The company will be reported within the Kanthal division of Alleima.

"Our strategy is focused on profitable growth, and we see a large potential within the medical industry, which is characterized by high growth and stable earnings. The acquisition of Endosmart further expands our capabilities and increases our current addressable market by adding new products and materials. We look forward to welcoming Endosmart to Alleima", says Göran Björkman, President and CEO of Alleima.

With complementary material technologies and Endosmart's expertise and capabilities in processing nitinol, the acquisition is enabling forward-integration in the value chain of the medical industry. The product and service offering, certifications, and existing customer base of Endosmart expands the current addressable market for Alleima. The combined expertise and footprint will drive further product development and geographical expansion through cross sales between the product portfolios and regions, as well as possibilities of joint utilization of production and application capabilities.

"We have a long-term strategic commitment to grow our medical business. With the acquisition of Endosmart, we will forward-integrate to strengthen our medical wire component offering while adding R&D capabilities that will be leveraged to develop and offer new unique solutions", says Gary Davies (right), Head of business unit Medical in Kanthal.

Endosmart was founded in 2002, has more than 90 employees and is headquartered in Karlsruhe, Germany. For the rolling twelve-month period ending September 2022, it had revenues of approximately SEK 105 million, and an EBIT margin neutral to Kanthal. The parties have agreed not to disclose the purchase price. Impact on Alleima's earnings per share will initially be neutral. The transaction is expected to close by the end of 2022 and is subject to customary approvals.

Alleima (formerly Sandvik Materials) will be exhibiting at Medical Technology UK 2023 on stand 69.