Target Company Overview

Avallon Fund has entered into a conditional agreement to sell shares of Meyra Group S.A. (formerly Medort S.A.) to an entity affiliated with H.I.G. Capital based in Miami. The transaction is contingent upon obtaining approval from UOKiK.

Over the years of significant growth and numerous acquisitions, Meyra Group has emerged as one of the top ten manufacturers of rehabilitation equipment globally. Since Avallon’s investment in the company, it has grown tenfold, increasing revenues from approximately €8 million to over €80 million while consistently improving financial performance. A notable event in the company’s history was the acquisition of Meyra Ortopedia in 2013, a leading German manufacturer of wheelchairs for people with disabilities, followed by its integration and development in subsequent years.

Industry Overview in Poland

The rehabilitation equipment industry in Poland has seen remarkable growth due to increasing demand driven by an aging population and a heightened focus on health and wellness. With a rise in the prevalence of disabilities and chronic illnesses, the need for advanced rehabilitation solutions has created significant opportunities for industry players. The Polish market is characterized by both local manufacturing and imports, with many products adhering to strict European standards for quality and safety.

Additionally, the Polish government has been supportive of the healthcare sector, implementing policies that encourage investment in medical technologies and equipment. This governmental backing, combined with the presence of innovative companies, fosters a competitive landscape that enables businesses like Meyra Group to thrive domestically and internationally.

Furthermore, as awareness about rehabilitation options increases among consumers, there is a growing expectation for advanced features and improved accessibility in rehabilitation products. Companies investing in research and development are likely to lead this market evolution, positioning themselves as industry leaders while meeting the demands of both healthcare professionals and patients.

Rationale Behind the Deal

The strategic rationale for the acquisition revolves around H.I.G. Capital’s extensive experience in scaling global leaders in diverse sectors. The partnership is anticipated to bolster Meyra Group’s capabilities and resources as it prepares for the next phase of growth and international expansion. By leveraging H.I.G.'s financial prowess and operational support, Meyra Group aims to enhance its competitive edge and foster innovation in product development.

This deal also signifies a continued trend in the rehabilitation market where consolidation efforts are increasingly vital to capture larger market shares and expand product offerings. The combination of Meyra’s established market presence with H.I.G.’s investment strategy positions the company for sustained success in upcoming years.

Investor Information

H.I.G. Capital is a global investment firm boasting assets exceeding €30 billion. It specializes in the private capital market and has offices in major cities including Miami, New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta, alongside international branches in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, and São Paulo. Since its inception in 1993, H.I.G. has invested in over 300 companies worldwide, with its current portfolio encompassing more than 100 firms and generating combined revenues exceeding €28 billion.

H.I.G. focuses on both equity and debt investments tailored to small and medium-sized enterprises. The firm’s deep sector expertise and hands-on approach to management enable it to build market leaders, making it an ideal partner for Meyra Group as it embarks on its growth journey.

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Experts view this deal as a potentially strong investment for both parties involved. Meyra Group's impressive growth trajectory and established position in the rehabilitation equipment market align well with H.I.G. Capital's investment philosophy, which emphasizes fostering high-potential companies. The partnership is likely to leverage H.I.G.'s resources and operational efficiencies to capitalize on the growing demand in the rehabilitation sector.

The rehabilitation industry in Poland is at a pivotal moment, with ample opportunities for expansion and innovation. This acquisition provides Meyra Group with the necessary backing to explore new markets and enhance its product offerings, thereby increasing its competitiveness. The international expertise of H.I.G. can significantly contribute to Meyra's aspirations to become a global leader in rehabilitation solutions.

Moreover, with health and wellness gaining prominence globally, Meyra Group's alignment with H.I.G. encompasses not just financial gain but a shared vision for enhancing rehabilitation outcomes. Should the partnership effectively capitalize on research and technological advancements, both companies stand to benefit significantly in the forthcoming years.

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