Information on the Target

Ciclad has acquired a stake in Groupe Phen’X Technologies, a company specializing in precision machining for the medical sector, through a leveraged buyout (LBO). This primary buyout also allows the company’s leaders, Manuel Gomes and Christophe Roy, to bring the director of the Portuguese production site into the equity structure. Founded in 2011, Phen’X Technologies leverages over 30 years of experience in micro-medical machining, focusing on the industrialization of medical devices, particularly for dental, maxillofacial, and orthopedic surgery.

The company operates two production sites located in France and Portugal and is recognized for its compliance with ISO 13485:2016, along with maintaining a Contract Manufacturer registration with the FDA in the United States. With a team of approximately sixty employees, Phen’X Technologies anticipates generating a revenue of €8 million in 2024.

Industry Overview in Portugal

The medical device industry in Portugal plays a pivotal role in the country's economy, characterized by a strong emphasis on innovation and technology. With a growing number of firms and startups entering the sector, the industry has become a significant contributor to exports. The Portuguese government has initiated various policies to support research and development, making it an attractive location for investment in the med-tech field.

Moreover, Portugal's strategic location within Europe provides easy access to other European markets, enhancing its position as a hub for manufacturing medical devices. The country’s skilled workforce and competitive labor costs also bolster its attractiveness for international companies seeking to establish a presence in the region.

As a result, the medical device sector is expected to continue growing, driven by increasing healthcare demands and advancements in technology. Companies like Phen’X Technologies are well-positioned to capitalize on these trends through international expansion and the development of innovative medical solutions.

The Rationale Behind the Deal

This acquisition positions Ciclad to support Phen’X Technologies in its ambitions for internationalization and operational structuring. By partnering with the existing management team, Ciclad aims to leverage their expertise and strategic vision to drive growth and maintain operational excellence. The deal aligns with Ciclad's investment strategy, focusing on companies with strong growth potential in high-demand sectors.

Furthermore, the involvement of the director from the Portuguese site underscores a commitment to enhancing local operations and increasing production capabilities, ensuring a robust foundation for future developments.

Information about the Investor

Ciclad is a prominent investment firm known for its focused approach to private equity. With a track record of backing high-potential companies across various sectors, Ciclad seeks to partner with management teams to accelerate growth and enhance operational performance. Their expertise in the medical technology sector positions them well to support Phen’X Technologies in its next growth phase.

By investing in companies with innovative product lines and a commitment to quality, Ciclad reaffirms its strategy to drive value creation through a hands-on approach that fosters collaboration and strategic development.

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This deal appears to be a favorable investment for Ciclad, given the substantial growth prospects within the medical device industry in Portugal. Phen’X Technologies, with its established reputation and strategic focus on high-demand medical specialties, is well-placed to benefit from increased market opportunities and international expansion. The combination of Ciclad’s capital and expertise with Phen’X’s operational capabilities could yield significant synergies.

The recent investment is further strengthened by the management’s extensive experience and vision for growth, signaling confidence in the company’s future. Moreover, the involvement of the production site director represents a commitment to local operation enhancement, which is crucial for scaling up business efficiency and production capabilities.

Overall, this strategic partnership is likely to enhance Phen’X Technologies’ market position and operational capacity, aligning well with Ciclad’s investment philosophy focused on promoting growth in innovative sectors.

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