GvW has provided advice to the medical technology provider TRACOE medical GmbH for the financing and implementation of the expansion into Great Britain.
The parent company of TRACOE, acting through an English subsidiary, has taken over the customer for many years, Kapitex Healthcare Ltd, in Wetherby (near Leeds) in the context of the succession to the business. Part of the financing has been provided by VR Equitypartner GmbH as mezzanine financing. Confidentiality was agreed about the amount of the financing and the purchase price.
TRACOE is a mid-size family company with its headquarters in Nieder-Olm in the Rhineland-Palatinate and is considered to be a leading supplier in the niche markets “tracheotomy” and “laryngectomy” (removal of the larynx). In both situations, respiration of the patient is secured by means of a so-called tracheal tube.
TRACOE has almost EUR 22 million in sales with its around 200 employees, 19 patents in the last 10 year and a growing family of products. The medical products are exported to a total of 86 countries.
Kapitex Healthcare Ltd., which was acquired at the Closing on 13 April 2016, has been a customer of TRACEO for more than 20 years and is its exclusive distributor for tracheal tubes in England. In addition, Kapitex markets especially its own products in the field of “airway management” (maintaining and securing the respiratory function in patients). As a result of the acquisition of Kapitex, TRACEO has secured its important English market for tracheal tubes.
The financing of the transaction and the acquisition of Kapitex was handled by the Frankfurt partners Dr Marco Zessel (lead, M&A), Stephan Menzemer (client partner) and Andrea Torka (financing). GvW was supported on the English side by Mills & Reeve LLP. The tax advice was provided by Michael Ludwig of RGT CONSULTANTS and James Cowper Kreston.