Target Company Overview

Groupe Acrotec has announced the signing of agreements to acquire two privately-held companies: Diener Ltd., which includes Diener AG Precision Machining and Diener Precision Pumps, and Tectri Ltd. Both companies specialize in the development and manufacturing of precision components and pumps, primarily for the medtech sector. Together, these acquisitions are projected to generate sales of nearly CHF 60 million for Groupe Acrotec in 2019.

This strategic move reinforces Groupe Acrotec's commitment to diversifying its portfolio within the medtech industry. The addition of Diener and Tectri enhances the company's capacity to pursue stable organic growth, complementing its existing endeavors in high-value sectors such as watchmaking, jewelry, and precision high-tech manufacturing.

Industry Overview in Switzerland

The medtech sector in Switzerland is recognized as a global leader, characterized by innovation and high-quality standards. It encompasses a wide range of products including surgical instruments, diagnostic devices, and advanced therapeutic solutions. The growth of this industry is driven by increasing healthcare demands, advancements in technology, and a strong emphasis on research and development.

Switzerland benefits from a robust infrastructure that supports medtech companies, including a highly skilled workforce and proximity to leading academic institutions and research centers. This environment fosters collaboration and innovation, contributing to the development of cutting-edge medical technologies.

Moreover, the regulatory framework in Switzerland ensures that medtech products meet rigorous safety and efficacy standards, enhancing the confidence of manufacturers and consumers alike. The nation's strategic focus on the medtech sector positions it for sustained growth and resilience against economic fluctuations.

As international demand for medical devices continues to rise, Swiss medtech firms are well-positioned to capitalize on emerging trends, such as digital health solutions and personalized medicine. The demand for high-precision components is expected to remain strong, further validating Groupe Acrotec's recent acquisitions.

Rationale Behind the Deal

The acquisition of Diener Ltd. and Tectri Ltd. aligns with Groupe Acrotec's strategic vision of diversified growth within the medtech industry. By expanding its capabilities in precision component manufacturing, the company positions itself to tap into the stable demand within this sector while mitigating risks associated with reliance on its traditional markets.

Furthermore, these acquisitions will enable Groupe Acrotec to leverage synergies in technology and expertise, enhancing its competitive edge and supporting its long-term growth objectives.

Investor Information

Groupe Acrotec is an independent group comprising micromechanical experts dedicated to providing high-quality subcontracted manufacturing solutions. With a focus on precision component manufacturing, Acrotec serves various industries, including automotive, medical, jewelry, and aeronautics. The company's commitment to quality products, labeled

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