Poly Medicure acquires Citieffe Group for Rs 324 crore

New Delhi: On September 24th, 2025, Poly Medicure, a leading Indian medical device company, announced a definitive agreement to acquire 100% of the Medistream SA group for an enterprise value of Rs 324 Crores (EUR 31 Million). The group includes Citieffe SRL and its subsidiaries in the USA and Mexico.

Citieffe is an Italy-based manufacturer specializing in the orthopaedic trauma and extremities segment. It has a direct presence in Italy, the USA, and Mexico, with a distribution network spanning over 25 countries. The company reported revenues of EUR 17.3 million and EBITDA of EUR 3.1 million in CY 2024, showing a year-on-year growth of 15% and 14%, respectively.

This strategic acquisition gives Poly Medicure a strong entry point into the large global orthopaedics market, specifically in the trauma and extremities segments, which are the fastest-growing and most resilient categories within orthopaedics.

Strategic Rationale for the Acquisition

This acquisition provides a platform for Poly Medicure to expand into the attractive global orthopaedics segment. It includes a diverse, fully accredited, and patented portfolio of trauma and extremity products, holding 45 patents and full EU MDR clearance and accreditation in key markets like the USA (FDA). Citieffe is the #2 independent player in Italy with a market share of over 12% in its targeted segment and a growing presence in the US, the largest orthopaedic market.

Citieffe has integrated business solutions with in-house capabilities from R&D to manufacturing to sales and distribution, allowing for agile product development. It is a resilient and profitable business with the potential to enter orthopaedic adjacencies through its strong in-house R&D. The acquisition also offers significant potential to scale up the US business, where product pricing is higher than in other geographies.

The company’s strong financials and Poly Medicure’s manufacturing expertise and global distribution network create significant synergies. Plans include expanding the product portfolio to add plates in the near term and entering the joint replacement market in the medium term. Poly Medicure also aims to expand its US presence by hiring more sales representatives and reduce costs by outsourcing parts of the manufacturing process to India. Furthermore, they plan to introduce Citieffe’s products to the Indian market by manufacturing them locally, which will lower costs and increase competitiveness. The acquisition will also expand the distribution network by leveraging Poly Medicure’s existing global network to deepen its presence in Europe and other countries.

Transaction Structure Overview

Poly Medicure is acquiring the Medistream SA group, with the existing management, including CEO Mr. Pascal Govi, continuing in their roles. The company is acquiring 100% of the group, a majority stake previously held by Archimed, a Europe-based healthcare-focused private equity fund. The equity valuation is approximately EUR 18.8 million, with shareholder loan liabilities of EUR 4.2 million to be repaid, resulting in an upfront payout of around EUR 23 million. Poly Medicure will also take over a net external debt of EUR 8.1 million.

The EUR 31 million enterprise value places the transaction at an EV/EBITDA multiple of 10.2x (based on FY 24). The acquisition is subject to customary closing conditions and is expected to be finalized within the next four to eight weeks.

Himanshu Baid, Managing Director of Poly Medicure, stated, “This acquisition marks another step in our journey to become a comprehensive healthcare solutions provider. Citieffe’s strong R&D capabilities and diverse portfolio align with our mission to deliver innovative, patient-centric technologies. We see synergies in combining Citieffe’s innovation pipeline with Polymed’s manufacturing scale and commercial reach—this is about creating long-term value for healthcare providers, patients, and our stakeholders.”

Pascal Govi, CEO of Citieffe, commented, “I’m enthusiastic to start a new venture with a group sharing a common culture and vision.”

Benoit Varichon, a Partner at Archimed, added, “We would like to thank CEO Govi and his team for their trust and outstanding achievement. We are proud to see Citieffe joining a leading Medtech Group to pursue its growth trajectory.”