Apax Funds and Fremman Capital invest in Palex Medical, a leading provider of medical technology solutions for healthcare professionals
31st July 2023Apax Funds advised by Apax Partners LLP (“Apax”) and funds advised by Fremman Capital (“Fremman”) announced today that they have reached a definitive agreement to jo
Funds advised by Apax Partners LLP (“Apax”) and funds advised by Fremman Capital (“Fremman”) announced today that they have reached a definitive agreement to jointly acquire co-controlling stakes in Palex Medical ("Palex” or the “Company”). The selling shareholders are funds advised by Fremman, the current majority shareholder, and other minority shareholders.
Palex is the leading provider of high value-added medical technology (“MedTech”) equipment and solutions in Southern Europe. Following the transaction, Apax and Fremman will partner with Palex’s management team to help drive future value creation and pursue international growth.
Founded in 1955 and headquartered in Barcelona, Palex is the leading independent MedTech solutions provider in Southern Europe, focused on the marketing, sales and logistics of high value-added MedTech equipment for public and private hospitals and laboratories in Spain, Portugal and Italy. The Company has a strong reputation for innovation, quality and service and offers a wide product portfolio of over 150,000 product references from 600+ world-leading tier-1 manufacturers.
Xavier Carbonell, CEO of Palex, said: "We're incredibly excited to continue our partnership with Fremman and to have secured the backing of Apax as a joint-lead investor for the next phase of our growth journey. Since 2007, the current management team has built Palex into a leading business that is trusted by the healthcare community, and I’m proud of our relentless focus on innovation, quality, and trust. We are very happy with the support that we have received, and will continue receiving from Fremman, which has allowed the Company to make the jump to become the leading provider of medical technology solutions in Southern Europe. By bringing a strong and experienced partner like Apax into our shareholder base, we expect to be able to further accelerate our growth, both locally and internationally. I’m confident we have the right strategic partners in place to execute on our ambitious plans and I’m excited for the future.” He also adds: “I would also like to take this opportunity to look back at all the successes achieved so far and thank Apheon and Corpfin Capital for their trust and involvement in the project”
Ricardo de Serdio, Founding Partner and CEO, Fremman Capital, added: "Since our entry in Palex in December 2021, we have pursued a clear strategy to support the Company in becoming an international leader in MedTech distribution. By leveraging our sector expertise, consolidation experience, and pan-European network, we have helped the Company complete 8 acquisitions – some of them transformational – across 4 countries, enter new geographies, and more than doubled the size of the business in less than two years. We are thrilled with the sale transaction and with our subsequent investment to continue supporting Xavier and the Company on this next phase of pan-European growth.”
Frank Ehmer, Partner, Apax, commented: “We couldn’t be happier to be partnering with Xavier and the wider Palex team, along with Fremman Capital. We have long identified the healthcare distribution sector as an ideal intersection between Apax’s deep expertise in MedTech and strong track record of investment in distribution-focused businesses. Throughout our engagement, it became immediately clear to us that Palex is a stand-out operator with the potential to establish itself as a pan-European leader. Palex has consistently outperformed over decades, with an unrivalled reputation and offering, and we look forward to building on this success to date, leveraging our experience and insights to help the team accelerate growth and execute on our joint vision for the future.”
The transaction is subject to customary closing conditions and is expected to close in Q4 2023. Financial terms were not disclosed.
Bank of America, Jefferies and Credit Suisse are acting as financial advisors on the transaction.
Pérez-Lorca and Uría Menéndez are acting as legal counsel to Fremman and management, Sullivan & Cromwell and Garrigues are acting as legal counsel to Apax. Dextra Corporate and Deloitte have participated advising the management.
About Palex Medical
Palex, founded in 1955 by the Knuth family, is a company focused on the marketing, sales and logistics of high value-added MedTech equipment and solutions in the Spanish, Portuguese and Italian markets. The Company has a strong reputation for innovation, quality and service and offers a wide product portfolio (+150,000 references) from world-leading Tier-1 manufacturers (+600 partnerships) and own products across numerous therapeutic areas. Palex counts with ~928 employees, has an income forecast of 485 millions in 2023 and is headquartered in Sant Cugat del Vallès (Barcelona, Spain).
Apax Partners LLP ("Apax") is a leading global private equity advisory firm. For 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of more than $60 billion. The Apax Funds invest in companies across four global sectors of Tech, Services, Healthcare, and Internet/Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For further information about Apax, please visit www.apax.com.