Embla Medical Completes Acquisition of Major Stake in Streifeneder Ortho.production GmbH

Embla Medical Completes Acquisition of Majority Stake in Streifeneder Ortho.production GmbH

In an important step forward for both companies, Embla Medical hf has successfully concluded its acquisition of a majority share in Streifeneder ortho.production GmbH, a prominent player in the orthopedic mobility solutions sector. The announcement was made by Embla Medical, a leading global provider celebrated for its innovative mobility solutions, which has its shares traded on NASDAQ Copenhagen under the ticker EMBLA.

The deal marks a significant milestone as it solidifies Embla Medical's investment strategy in the orthopedic sector, echoing their commitment to improve mobility and healthcare solutions worldwide. The completion of the transaction took place after receiving necessary regulatory approvals, allowing Embla to acquire a 51% ownership stake in Streifeneder ortho.production. This well-known German company specializes in the development and supply of orthopedic mobility solutions, and it employs approximately 100 people dedicated to the manufacture of prosthetic and orthotic components, in addition to providing orthopedic materials and equipment for the operative industry.

For the fiscal year 2024, Streifeneder ortho.production reported impressive sales of approximately EUR 25 million, which translates to around USD 29 million. Notably, around 70% of these sales were attributed to their prosthetic and orthopedic materials line of products. This robust financial performance highlights the strategic advantage that Embla Medical will gain from this majority share acquisition.

Following the investment, Embla Medical's Board of Directors has approved an increase in its share capital by issuing 2,805,135 new shares, raising its nominal value capital by 0.7%, elevating it from ISK 427,636,122 to ISK 430,441,257. Each new share was issued at the price of DKK 33.26, which accumulates to a total value of the share capital increase of DKK 93 million (approximately EUR 12.5 million). The sellers of Streifeneder ortho.production will purchase all the newly issued shares, and they have committed to a two-year lock-up period following the closure of the transaction.

The implications of this acquisition are noteworthy: while it is anticipated that the transaction will enhance Embla Medical’s offerings in the mobility solutions market, it is also not expected to significantly impact their financial guidance for the year 2025.

Embla Medical was founded in Reykjavik in 1971 and has a longstanding mission to enhance people's mobility through its wide range of products and services. Beyond Streifeneder, Embla Medical encompasses several renowned brands, including Össur, a leading global provider of prosthetics and bracing solutions, FIOR GENTZ, known for innovative neuro orthotics, and College Park Industries, which specializes in custom-built prosthetics. With a global team of over 4,000 employees, Embla Medical is dedicated to advancing healthcare and improving the quality of life for patients worldwide.

As part of their commitment to sustainability, Embla Medical aligns its operations with UN Global Compact principles and has had their climate targets assessed by the Science Based Targets initiative. This strategic acquisition exemplifies their ongoing pursuit of innovation and excellence within the healthcare domain, further solidifying their position as an industry leader.

For more detailed queries regarding Embla Medical, investors and stakeholders can reach out to Klaus Sindahl, the Head of Investor Relations, or Edda Heidrun Geirsdottir, VP of Corporate Communication, through provided contact information. Inquiries about Streifeneder can be directed to Sabine Knobloch of the Legal Department. In an increasingly competitive environment, the collaboration between these two companies heralds new opportunities to deliver high-quality mobility solutions to users globally.