Össur, Reykjavik, Iceland, has signed an agreement to acquire 100 percent of the shares of O&P provider TeamOlmed, Jönköping, Sweden, for SEK 310 million (US $47 million). Additional payments of up to SEK 50 million (US $7 million) will be paid so long as TeamOlmed meets certain revenue and profitability targets in 2013 and 2014. The acquisition is subject to approval from Stockholm County Council and is expected to close in the third quarter of 2013.
With the acquisition, Össur, which has a longstanding business relationship with TeamOlmed, will gain a significant share of the Swedish O&P market.
TeamOlmed was formed in 2011 through the merger of Olmed Ortopediska, Uppsala, Sweden, founded in 1984, and Team Ortopedteknik, Jönköping, founded in 1994. TeamOlmed is Sweden’s largest provider of O&P solutions. The majority of sales are through contracts with county councils in Sweden. The company has more than 300 employees in patient care centers in Stockholm, Jönköping, Uppsala, and several other locations around Sweden. Total revenues in 2012 amounted to SEK 348 million (US $52 million) with an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of SEK 43 million (US $6 million), which is expected to be the full year impact to Össur’s financial statements once fully consolidated. TeamOlmed reported total assets of SEK 419 million (US $63 million) at year-end 2012.
“We are excited to partner with TeamOlmed and its employees,” said Jon Sigurðsson, president and CEO of Össur. “TeamOlmed’s expertise and commitment in providing excellent patient care is very complimentary to Össur. This acquisition is an important milestone for Össur, strengthening our position in an increasingly consolidated Swedish market.”