Riverside Expands Global Healthcare Portfolio with Orthopedic Manufacturer January 25, 2011
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Riverside Europe Fund acquires Orilman SL
The Riverside Company has acquired Orliman SL (Orliman), a Spanish manufacturer and distributor of non-invasive orthopedic braces and supports.
The global orthopaedic device market is valued at €16.1 billion.
Orliman, founded in 1980 and headquartered in Valencia, makes and distributes devices that support patients’ lower limbs and torsos. All Orliman products are traded under its proprietary brand names and bear IBV certification. Orliman recorded sales of approximately €14 million in 2010.
Having completed more than 245 acquisitions since 1988, Riverside is a well-established generalist investor. However, the firm has developed specializations in select industries. With over 50 acquisitions to date, healthcare represents Riverside’s most active specialization, with companies that offer products or services centered on patient preference, improving quality of care, or taking cost out of the healthcare system. Orliman joins Riverside’s current European healthcare portfolio, which includes The Summit Medical Group, Crioestaminal and Diatron Group.
Riverside’s international reach opens new markets and sourcing opportunities for Orliman. The firm’s global operating expertise allows its portfolio companies to access markets and manufacturers they are too small to reach independently. Specifically, Riverside’s Asian resources include a team dedicated to helping companies buy, sell and manufacture in Asia.
“Riverside has had previous success in the U.S. orthopaedic market with FLA Orthopaedics, which under Riverside’s ownership increased revenue and EBITDA by 166% and 330%, respectively. We will leverage this knowledge and experience and apply it to Orliman to strategically grow the company. The global orthopaedic product market is highly fragmented and there are further opportunities to acquire companies that provide complementary products or broaden Orliman’s geographic presence,” said Marcos Llado, Riverside Partner in Madrid.
“Orliman’s future challenges include the professionalization of the company, the reinforcement of new product development activities and the strong increase of Orliman presence in international markets. Riverside’s global presence, its valuable network of industry contacts and its specific knowledge about the healthcare industry and the orthopaedic sector in particular, makes it the ideal partner to support us in this new stage of development of the company,” said Ignacio Mansergas, founder and reinvesting shareholder of Orliman.
The Riverside team responsible for the transaction included Partner Marcos Llado, Vice President, Dominik Heer and Senior Associate Rafael Álvarez-Novoa. Director of Origination Juan Barnechea-Aldatz sourced the deal.
“Orliman is the absolute leader in its market. It is very well positioned in the specialized retail channel in Spain, with over 1,600 retailers directly served,” said Barnechea-Aldatz. “We believe that new product introduction has been a key factor in Orliman’s success in the past, and with several new products currently in the pipeline, we foresee significant growth for the company in the coming years.”
North America and Asia Pacific
Director of Marketing and Communications
The Riverside Company
Assistant Director of Marketing and Communications
The Riverside Company