Corpfin Capital has divested a majority stake in Palex, which has been acquired by the pan-European private equity player Ergon Capital. Corpfin Capital will retain a minority stake in the company. The Knuth family, who reinvested with Corpfin in 2016, fully exits Palex in this transaction. Optima Corporate has advised Corpfin Capital in this transaction, initiated last September.
In this new stage, Ergon Capital and Corpfin Capital plan to continue the successful organic and inorganic growth strategy, followed since 2016 under the leadership of Corpfin Capital. Both entities aim to progress on the consolidation of complementary targets operating in the medical equipment distribution sector. Palex’ management team has plenty of experience integrating companies, as they have completed about ten acquisitions – outstanding Grupo Taper, Madex, 4D, Biogen and Bemascé- only during Corpfin Capital’s investment period. In 2019 Palex Medical expects to reach around €190 million sales, doubling its sales in 2015.
Commenting on the acquisition, Xavier Carbonell, CEO of Palex, said: “We are convinced Ergon is the right partner for Palex next stage of development and are excited to start this new phase in which we look forward to pursuing further growth opportunities in Spain and abroad, in line with the Company’s historical development”.
Alberto Curto, Managing Partner of Corpfin, said: “We are convinced about Palex’s strong potential and that Ergon is the best suited partner to bring the Company to the next level. Palex has a unique business model in a very attractive sector and we are thrilled to continue supporting management alongside Ergon in this new phase”.
Emanuele Lembo, Managing Partner of Ergon, commented on the transaction: “Palex is the leading platform of MedTech equipment in Spain counting with long-lasting tradition and excellent reputation across public and private clients. The Company operates in an attractive market with clear supportive underlying trends which will likely further underpin Palex’s leadership”. Pablo Álvarez Couso, Director at Ergon in Spain, concluded: “We are delighted to partner with such an excellent and visionary management team and to support them in their expansion plans for the Company in the upcoming years, both in Spain and internationally”.
Other Recent Transactions
Corpfin Capital, led by Alberto Curto, Álvaro Olivares, Fernando Trueba and Gorka García, has recently completed the partial divestments from Preving, the health and prevention company sold to Artá, and Grupo 5’s elderly care business to Korian, the French elderly nursing homes operator. Regarding investments, Corpfin Capital has recently completed the acquisition of a majority participation in Berioska.