11 May 2017
Paris, France – PAI Partners, a leading European private equity firm, announces today that it has entered into exclusive negotiations with Ergon Capital Partners, a pan-European mid-market private equity investment company, for the acquisition of ELITech Group, a manufacturer of specialty in-vitro diagnostics (“IVD”) equipment and reagents.
ELITech is a leading mid-sized fully integrated diagnostics platform developing equipment and reagents with strong positions in niche and growing sub-segments of molecular diagnostics, microbiology and clinical chemistry. ELITech has developed an attractive razor-razorblade model through the placement of diagnostic instruments which provide a resilient revenue stream from reagents, consumables, spare parts and services.
Stefano Drago, Partner at PAI Partners, commented: “Over the past years, PAI has invested significant time and resources in the labs and diagnostics space. We believe IVD is an attractive segment and are delighted to be partnering with an outstanding management team led by Christoph Gauer. ELITech is a unique asset and we look forward to working with the team to successfully implement its growth strategy in the coming years.”
Wolfgang de Limburg, Managing Partner of Ergon, commented: “This successful investment is consistent with Ergon’s long-term philosophy and approach to value creation. Over the life of this investment, Ergon supported ELITech’s focused strategy, significant R&D programs, geographical expansion, add-on acquisitions, and ambition for operational excellence. We trust that ELITech and its outstanding management team will succeed in further creating value in the future and we are convinced that PAI will be an excellent partner for the company’s next phase of growth.”
The French employee works councils of ELITech will be consulted in respect of the transaction and completion of the transaction would be subject to regulatory approval and other customary conditions precedent.