Industry News
French Company Lumibird To Acquire Ellex’s Lasers and Ultrasound Business
Lumibird, the European leader for laser technologies, has signed an agreement with the Australian company Ellex Medical Lasers Limited to acquire Ellex’s laser and ultrasound business for 100 million Australian dollars. According to the press release, this acquisition will create a world leader for laser and ultrasound technologies for the diagnosis and treatment of ocular diseases.
Under the transaction agreed on December 23, 2019, the Lumibird Group will acquire all of Ellex’s laser and ultrasound activities, with pro forma revenues of AUD 65.5m based on the year ended June 30, 2019. The assets acquired include the Ellex brand, the R&D and production site in Adelaide and the commercial subsidiaries based in Australia, Japan, the US, France and Germany. For the year ended June 30, 2019, the laser and ultrasound segment recorded a 9.5m EBITDA, excluding head office costs (AUD 5.2m for the consolidated group, with about 75% estimated for the laser and ultrasound segment).
The combination of Lumibird’s medical activities (through its subsidiary Quantel Medical) with those of Ellex offers strong potential for growth and value creation, thanks in particular to:
- Product synergies with complimentary features in terms of the pathologies addressed and comprehensive segmentation covering the various categories adapted for all markets;
- Commercial synergies, with Ellex directly handling 75% of its sales, while Quantel Medical sells primarily through its strong network of distributors. Their geographical positionings are also highly complementary, with Ellex particularly well-established in Japan and the US and Quantel Medical covering Europe;
- A scale effect, resulting from the alliance between two companies that are already leaders in their markets, which will notably further strengthen their joint R&D capabilities.
Marc Le Flohic, Chairman and CEO of Lumibird, says: “To truly create a difference in the lives of as many people affected by laser treatable blindness as possible, it is vital for companies such as Quantel Medical and Ellex to come together in order to reach a critical mass and make the most of their respective strengths; be that in diagnostic devices such as ultrasound or in treatments based on laser products”.
Maria Maielli, CEO of Ellex Medical Lasers, said: “The proposed sale of the Ellex Lasers & Ultrasound business to Lumibird, which includes our state of the art manufacturing facilities in Adelaide, Australia highlights the value of our brand, the dedication of our employees, the strategic importance of our global sales and distribution network, and the many doctors and patients we serve. Lumibird will make an excellent strategic fit for Ellex’s market leading range of lasers and ultrasound to treat a range of important eye diseases”.
Jean-Marc Gendre, CEO of Quantel Medical, adds: “Quantel Medical and Ellex know one another very well, which will facilitate their integration. The two companies have complementary assets, with strong brands and ophthalmic market expertise. Their alliance will enable us to offer a wider range of products across all levels of pricing in order to better meet clients’ diverse needs”.
The acquisition will be submitted to Ellex’s shareholders for approval at a general meeting to be held during the first half of 2020, with completion to occur mid-2020. It will be financed partly through equity and bank debt. Lumibird’s acquisition of Ellex’s laser and ultrasound activities has been approved by the Boards of Directors of both groups, and Ellex’s Board of Directors unanimously recommends that Ellex’s shareholders approve the operation with Lumibird.
The new Lumibird’s Medical branch extended in this way is targeting €90m of revenues by 2021, with an EBITDA margin of 15%. Lumibird’s Medical business recorded €33.6m of revenues and an EBITDA margin of 10.6% in 2018. This important transaction for the Lumibird group represents a significant step forward with the external growth strategy of the Lumibird Group, which is continuing to explore opportunities for acquisitions in its three strategic segments. On a more modest scale, Lumibird has just acquired the UK-based Lidar systems manufacturer Halo Photonics, with annual sales around GBP 3m.
