#Iceland #Prosthetics #Reykjavik #Embla Medical #Streifeneder

Embla Medical to Acquire Majority Stake in Streifeneder Ortho. Production GmbH

Embla Medical hf, a leading global provider renowned for its innovative mobility solutions, has made a notable advancement in its growth strategy by signing an agreement to invest in a majority share of 51% in Streifeneder ortho.production GmbH. This strategic move, which was revealed on July 17, 2025, marks a significant milestone in Embla Medical's ongoing commitment to enhancing its global reach within the orthopedic market.

Background on Embla Medical

Founded in Reykjavik in 1971, Embla Medical (traded on NASDAQ Copenhagen as EMBLA) has continuously aimed to improve people’s mobility. The company has a diverse portfolio that includes several high-profile brands known for their impactful contributions to health and well-being, retaining a significant focus on sustainability in its operations. Embla Medical employs over 4,000 individuals worldwide and remains committed to furthering the UN’s Sustainable Development Goals.

About Streifeneder GmbH

Streifeneder ortho.production GmbH is recognized for its profound expertise in developing and supplying orthopedic mobility solutions, catering to the medical sector with high-quality prosthetic and orthotic components. Currently operating under the Streifeneder KG umbrella, the company is integral to a wide network of orthopedic clinics throughout Bavaria, Germany. With a workforce of approximately 100 employees, Streifeneder reported sales reaching EUR 25 million (around USD 29 million) in 2024, with a primary focus on prosthetics and orthopedic materials constituting around 70% of its revenue.

Investment Rationale

The transaction is seen as a significant opportunity for Embla Medical to broaden its product offerings and position itself as a full-range provider within the rapidly growing orthopedic market. By acquiring the majority stake in Streifeneder, Embla is set to solidify its presence in Germany, recognized as the second-largest orthopedic market globally. The combined strengths of these two companies are expected to create numerous synergies, thereby accelerating sales growth and enhancing customer service.

Sveinn Sölvason, President and CEO of Embla Medical, emphasized the strategic importance of this acquisition, noting that it aligns perfectly with Embla’s 'Growth'27 strategy aimed at expanding its international presence. He pointed out the importance of reaching more patients with a broader array of solutions, thus enhancing the overall customer and patient experience.

Friedrich Streifeneder, the Managing Director of the company, expressed optimism for the future under Embla Medical’s ownership, stating that the partnership would solidify a strong market position while delivering enhanced value to their customers.

Growth Prospects

Both parties predict that the newly merged entity will experience growth rates in line with the global prosthetics market, expected to rise by 5-7% in the short term. With Embla Medical's established global footprint, the partnership aims to maximize operational efficiencies and tap into expanding markets across the Americas and Asia-Pacific regions.

Financial Implications

To fund this acquisition, Embla Medical has indicated plans to issue 2,805,135 new shares, raising its share capital nominally by 0.7%. The shares are projected to be priced at DKK 33.26 each, with a total capital increase estimated at DKK 93 million (approximately EUR 12.5 million).

As regulatory approvals are awaited for the transaction's completion, the financial implications will be detailed more comprehensively during Embla Medical’s Q2 report release on July 22, 2025. This acquisition is not anticipated to materially affect the financial guidance for the year 2025.

Conclusion

Embla Medical’s acquisition of Streifeneder ortho.production GmbH marks a crucial step toward solidifying its influence in the orthopedic market, integrating their resources and knowledge to enhance the broad spectrum of mobility solutions they provide. This strategic partnership is poised to benefit a multitude of patients and healthcare professionals across the globe.