Target Information

Ober Scharrer Gruppe (“The Company”) is the leading ophthalmology group in Germany, boasting over 85 locations and performing more than 120,000 treatments annually. The Company offers a range of key services, including cataract surgeries and innovative treatments such as Intravitreal Operative Drug Application (IVOM) for degenerative eye conditions. Furthermore, it provides non-invasive eye treatments and comprehensive diagnosis of eye disorders. Having been founded by two physician founders, Ober Scharrer Gruppe underwent significant transformation under Palamon Capital Partners to capitalize on the opportunities presented by the deregulation and corporatization of healthcare delivery in Germany.

Under Palamon’s ownership, the Company effectively positioned itself as a dominant player within a fragmented ophthalmology market, achieving a substantial 3.6x investment return upon its sale to the Nordic Capital Fund IX in 2018. With its strong clinical offerings and acquisition capabilities, Ober Scharrer Gruppe continues to lead the market in ophthalmologic services.

Industry Overview in Germany

The healthcare industry in Germany is characterized by a robust regulatory environment and a mix of public and private providers. The country's healthcare system is known for its excellence and innovation, driven by ongoing research and development initiatives. As a leading healthcare market in Europe, Germany frequently experiences new technological advancements and treatment methodologies, making it a prime location for investments in medical services.

In recent years, the trend towards the corporatization of healthcare has accelerated. This shift has created opportunities for consolidation among healthcare providers, particularly in specialized fields such as ophthalmology. The growth in awareness and demand for efficient eye care services has brought about a wave of investment in the sector, making it an attractive area for venture capitalists and private equity firms alike.

The ophthalmology market in Germany offers significant growth potential, with increasing incidences of eye disorders and an aging population driving demand for premium treatment options. The market is fragmented, presenting substantial consolidation opportunities for well-positioned companies like Ober Scharrer Gruppe to capture additional market share and enhance service offerings.

As a result, the German healthcare sector, especially in ophthalmology, is set on a trajectory of growth, driven by advancements in medical technologies, regulatory support, and the increasing need for specialized care. Investors are keenly focused on this segment as it aligns with long-term growth trends and sustainable returns.

Rationale Behind the Deal

The recent roll-over investment by Palamon Capital Partners in Ober Scharrer Gruppe comes as a strategic move to align with the company’s continued growth and expansion plans under the auspices of Nordic Capital. Given the successful transformation of the Company since its initial acquisition, Palamon recognizes the potential for further value creation through strategic investments and partnerships.

Palamon's confidence in Nordic Capital’s capabilities and stewardship reflects a shared vision for Ober Scharrer Gruppe’s future trajectory, emphasizing the company’s prime positioning in the ophthalmology market and its potential to capitalize on ongoing market consolidation opportunities.

Investor Information

Palamon Capital Partners is a private equity firm with a strong focus on high-growth, market-leading companies. With a track record of successful investments over the past 20 years, Palamon is renowned for identifying and nurturing businesses that are well-aligned with long-term secular trends. The firm has consistently demonstrated an ability to deliver outsized returns for its investors through strategic guidance and operational excellence.

Palamon’s investment philosophy centers around partnering with exceptional management teams and harnessing transformative opportunities within various sectors. Their history of successfully navigating and exiting investments, often yielding significant gains for successor owners, reflects their adeptness in the competitive landscape of private equity.

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This deal is indicative of Palamon Capital Partners' strategic foresight and commitment to leveraging growth opportunities in the healthcare sector. Ober Scharrer Gruppe's robust service offerings and leadership in the ophthalmology market present a strong case for continued investment and support. The partnership with Nordic Capital brings additional expertise and resources to foster ongoing growth and innovation.

Investing alongside established players like Nordic Capital bolsters the potential for achieving further market consolidation in ophthalmology, a sector ripe for expansion. Given the fragmented nature of the market and the increasing demand for specialized services, this investment is poised to yield favorable returns for Palamon and its investment partners.

In conclusion, the deal exemplifies a strategic alignment with a growing industry segment, driven by demographic shifts and advancements in eye care. As consumers increasingly seek innovative treatments, Palamon's investment in Ober Scharrer Gruppe stands as a commendable move that could yield significant long-term benefits.

Overall, this transaction is expected to contribute positively to both Palamon's portfolio and to the further development of Ober Scharrer Gruppe, reinforcing its leadership position in the German ophthalmology market.

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