Information on the Target

AGITO Medical is a premier provider of medical imaging solutions, specializing in the rental and maintenance of high-quality imaging equipment. Established in Aalborg, Denmark in 2004, AGITO has grown to support healthcare practitioners across Europe by offering tailored rental services in modalities such as CT, MRI, and CathLabs. The company manages a large inventory of nearly 50 rental units and employs 47 personnel, ensuring it can meet the diverse needs of hospitals and clinics effectively.

Following its acquisition by Philips in 2018, AGITO experienced substantial growth and expansion into various international markets, currently operating in over ten countries, including Germany, France, Ireland, and the United Kingdom. With a mission to provide cost-effective solutions for healthcare providers, AGITO has positioned itself among the top three medical imaging rental businesses in Europe.

Industry Overview in Denmark

The medical imaging rental market in Europe is valued at approximately €500 million and is projected to grow by 6-7% in the coming years. This growth is largely driven by the increasing demand for diagnostics, which are fundamental to clinical pathways in healthcare. The necessity for rapid, high-quality medical imaging capabilities is becoming ever more crucial as healthcare systems adapt to rising patient numbers and complex medical needs.

Denmark has a robust healthcare system characterized by high standards of medical care and innovation. The country boasts strong regulatory frameworks that support healthcare business operations while ensuring patient safety and quality. Medical imaging plays a crucial role in Denmark’s healthcare delivery, facilitating early diagnosis and treatment strategies essential for improving patient outcomes.

In addition to Denmark, neighboring European markets are also witnessing similar trends, as hospitals and clinics seek to optimize their operations through flexible equipment rental solutions. This shift reflects a broader transition towards value-based care, which emphasizes efficient use of resources while maintaining high-quality healthcare services.

As Europe’s healthcare systems continue to evolve, the demand for scalable, innovative medical imaging solutions is expected to rise, presenting significant opportunities for businesses like AGITO Medical that are well-positioned to serve this market.

The Rationale Behind the Deal

Duke Street's acquisition of AGITO Medical underscores its commitment to investing in vital sectors of the healthcare ecosystem. By acquiring AGITO, Duke Street aims to enhance its capacity to deliver top-tier medical imaging services and equipment while reinforcing AGITO’s existing operations with financial resources for further expansion.

This acquisition provides a timely opportunity to capitalize on the growing demand for imaging solutions in Europe, allowing AGITO to scale its operations and solidify its status as a key partner to both public and private healthcare systems across the region.

Information about the Investor

Duke Street is a well-established private equity firm with over twenty years of experience focusing on mid-market businesses in Western Europe. The firm has a proven track record of successfully investing across various sectors, including healthcare, where it has deployed over €600 million since its inception. Duke Street typically targets companies with enterprise values ranging from £50 million to £350 million, aiming not only to facilitate growth but also to transform the operations of the businesses it invests in.

Having successfully exited numerous healthcare investments, including the sale of Medi-Globe Group for approximately €245 million, Duke Street brings significant expertise and a strong operational focus to its investment strategy. Their current portfolio includes Kent Pharmaceuticals, which has seen significant growth post-acquisition.

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Duke Street's acquisition of AGITO Medical appears to be a strategic investment in an essential segment of the growing healthcare market, particularly within the medical imaging rental sector. The anticipated growth rate of the industry coupled with AGITO's established presence and reputation for quality makes this an appealing opportunity. By injecting capital into AGITO, Duke Street is likely to enhance the company’s capabilities, which could yield substantial returns over time.

Furthermore, the healthcare sector's push for efficient and quality diagnostic solutions creates a favorable environment for AGITO to expand its market share. The ongoing emphasis on cost-effective healthcare solutions aligns with AGITO's business model, suggesting that the company is well-placed for future growth.

Given Duke Street’s commitment to effective management and operational improvements, their investment could catalyze AGITO’s expansion in new markets and solidify its position within the competitive landscape. The combination of an established client base, industry expertise, and a clear growth strategy forms the bedrock of a potentially lucrative investment for Duke Street and its investors.

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