Fremman Capital to acquire a majority stake in Palex

Fremman acquires Palex from Ergon and Corpfin. The management team, Ergon and Corpfin, will remain as minority shareholders alongside Fremman.

Today, Fremman (“Fremman”) announced the acquisition by Fremman of a majority stake in Palex (or the “Company”), the leading distributor of high value-added MedTech equipment and solutions.

Headquartered in Barcelona (Spain) and founded in 1955 by the Knuth family, Palex is the leading distributor of high value-added MedTech equipment and solutions for public and private hospitals and laboratories in Spain and Portugal. The Company leverages on a unique business model offering a wide product portfolio with over 130,000 references from +550 blue-chip suppliers, primarily distributed under exclusivity contracts, to more than 1,500 public and private clients.

The Company is led by the CEO Xavier Carbonell who, together with the rest of the management team, have been successful over the years in consolidating the healthcare distribution sector in Iberia with a continued inorganic strategy on top of organic growth, building Palex as the reference partner for public and private hospitals.

The MedTech market has positive tailwinds, expecting to grow steadily driven by demographic changes and the growth of the global healthcare sector.   Being the market leader, the Company is best placed to capture a larger share of this market growth, whilst also being well-positioned for the consolidation of the fragmented market, to become a leading player in Europe.  It has already proven a very successful M&A track record with 12 add-ons completed since 2016.

Xavier Carbonell, CEO of Palex, commented on the transaction: “Since 2007, when the current management team joined the Company, we have relentlessly focused on delivering best-in-class service for the broad healthcare community, continuously bringing new solutions and entering into innovative therapeutic areas. Furthermore, we are proud to have integrated more than 10 acquisitions since 2016. We are very grateful and happy with the uncompromised support we have had from Ergon and Corpfin and thrilled about the next phase with Fremman as majority shareholder, where we will continue to further pursue growth opportunities in Iberia and abroad.”

Ricardo de Serdio, Founding Partner and CEO of Fremman said “We are very excited to partner with Palex, its outstanding management team, Ergon and Corpfin and to be part of its ambitious growth story. Xavier and his team have consistently outperformed the market and delivered excellent results across all areas. In this next stage, we are confident that Fremman’s sector expertise, consolidation experience, pan-European network, hands-on approach, and ESG focus will further enhance Palex’s potential and will help management take the Company to the next level.”

About Palex

Palex, founded in 1955 by the Knuth family, is a company focused on the marketing, sales and distribution of high value-added MedTech equipment and solutions in the Spanish and Portuguese markets. The Company has a strong reputation for innovation, quality and service and offers a wide product portfolio (+130,000 references) from world-leading Tier-1 manufacturers (+550 partnerships) and own products across numerous therapeutic areas. Palex has ~625 employees and is headquartered in Sant Cugat del Vallés (Barcelona, Spain).

For more information on Palex, please visit palexmedical.com

About Fremman

Founded in 2020, Fremman is a pan-European, independent mid-market investment firm with offices in London, Madrid, Munich, and Paris. The firm is an established multi‐geography platform consisting of c.30 professionals that operates as one team. It is supported by a highly experienced Board of Advisors of 16 individuals that provide unique sector expertise and insights. The firm focuses on investments in four core sectors, including healthcare, business & tech services, consumer goods & distribution, industrials & sustainability. Utilising our reputation as trusted advisors, Fremman looks to partner with companies’ management teams to deploy multiple growth strategies, transforming businesses from national to multinational sustainable leaders. Palex will be the third investment for Fremman in 2021, after the acquisition of The Natural Fruit Company and VPS.  After Palex, the expected total equity invested by Fremman and co-investors across these three deals is circa €500m.

For more information on Fremman, please visit fremman.com

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