Press release:

Handicare acquires Ligtvoet Products

Helmond - 30 June 2009 - Handicare acquires manufacturing company Ligtvoet Products, part of the Harting-Bank Group. Ligtvoet Products, also known as Lipro, develops and manufactures care and rehab mobility products for disabled people. The dealer organisation Ligtvoet will continue to be part of the Harting-Bank Group.

Ligtvoet Products, based in Helmond, the Netherlands, is a former family business which started as a bicycle manufacturer. Since 1965 Ligtvoet Products has specialized in developing and manufacturing high-quality comfort and rehab mobility products. Ligtvoet Products has a strong position in the Dutch market and export sales to Belgium and Switzerland. For now, Ligtvoet Products will continue to operate independently under the name Lipro. Handicare aims to integrate the company’s activities into the Handicare organisation by the end of the year. Handicare will take over all Ligtvoet Products’ staff.

Handicare is one of the fastest growing healthcare companies in Europe. The company offers solutions and support to increase the independence of disabled or elderly people as well as to improve the convenience of those who are caring for them.

The acquisition of Ligtvoet Products is part of Handicare’s growth ambitions. ”We will grow both organically and through acquisitions and we have a strong development internationally”, says Rens Schoenmakers, Senior Vice President Mobility of Handicare. ”With the expertise and products of Ligtvoet Products we are now able to offer a wider range of manual and power wheelchairs, and scooters. This will strengthen our position in the Netherlands as well as in other geographical markets,” says Schoenmakers.

”We are very positive about Ligtvoet Products becoming part of Handicare,” says Marco Jungschlager, CEO of Harting-Bank Group. ”The activities of Ligtvoet Products have a very good fit with Handicare. The organisation, expertise and extensive dealer network of Handicare can contribute to further development of the Lipro products. Additionally, we are very happy for our staff. Their jobs remain in the Netherlands, close to our operation in Helmond. Our Group will be able to fully focus on service and supplying solutions to the end users,” says Jungschlager.

About Handicare
The healthcare company Handicare AS, owned by Herkules Private Equity Fund, was founded in 1986 and offers solutions and support to increase the independence of disabled or elderly people as well as to improve the convenience of those who are caring for them. Handicare’s extensive range of products is designed to satisfy specific local market needs and includes high-quality mobility products, patient handling and bathroom safety products, stair lifts and car adaptations. Through its subsidiary Puls, the Handicare Group also has a leading position in Norway in the sales of capital goods and consumables to hospitals and institutions. Handicare, headquartered in Moss, Norway, has long-established operations in Sweden, Denmark, Germany, the Netherlands, United Kingdom, Belgium, Poland, USA and Canada, and distributes its own products to an additional 30 markets. The Handicare Group reached a sales revenue of 225 million Euros in 2008.

About Harting-Bank Group
Harting-Bank B.V., owned by NPM-Capital since 2006, was founded in 1836 and is a service-provider and supplier of care and rehab products for disabled people. The company focuses on the Dutch market, where it offers services on behalf of various customers to their clients. Customers include local authorities and health insurers. The Harting-Bank Group operates under various labels, including Harting-Bank and Ligtvoet. The Group has country-wide coverage with over 25 independent operations. Harting-Bank has chosen to focus on service and supplying solutions to end users and on qualitative and controlled growth. The Group reached a sales revenue of 100 million Euro in 2008.

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For more information, please contact:
Juliet de Kleijn
Communication Specialist
Handicare
T: +31 (0)492 593893
M: +31 (0)6 46308415
E: juliet.dekleijn@handicare.com

Press Release:

Handicare: moving forward - growth strategy

The German healthcare market, like most healthcare markets today, is undergoing fast and necessary change in order to serve a dynamically growing customer base – notably the aging population with increasing need for enhanced mobility.

Handicare has been recognised as a leading supplier of a wide range of high-quality, innovative mobility products in Germany since the 1990’s, establishing its own operation in 1999. To further strengthen our position in this marketplace, Handicare is continually looking for new, innovative solutions and organisational development.

We are proud to announce that, following a successful launch in various European countries, Handicare’s new power wheelchair Alex, offering a new level of comfort and choice, will soon be available in Germany, too. From 1 January 2010 the Topro products will no longer be exclusively distributed by Handicare. More new mobility programme details will be announced as we move forward.

Handicare, however, has not only seen new initiatives in the area of mobility. Earlier this year, we successfully introduced the SystemRomedic, adding a complete transfer and lifting programme to our portfolio. Our ‘Leichter Leben’ concept has now become established and, with a growing private market, we anticipate further growth in this area. To achieve this, the product offering will continue to evolve.

Thomas Appel, who has played a leadership role in building Handicare in Germany, has decided to look for new challenges. He steps down from his position as general manager with immediate effect. Handicare thanks Thomas for his contribution over the years.

Handicare has engaged Frank Barlin, Managing Partner at Sibaya LifeScience! – a renowned European healthcare management consulting company - to lead the executive search for a new general manager and ensure a smooth transition.

Per Gunnar Borhaug, President and CEO of Handicare commented “We are confident that Handicare is well-positioned for future success and we will continue to provide you with the best possible solutions and support. Of course, we will keep you informed as we move forward”.

About Handicare
Handicare, one of the fastest growing healthcare companies in Europe, offers solutions and support to increase the independence of disabled or elderly people as well as to improve the convenience of those who are caring for them. The Group’s extensive range of products is designed to satisfy specific local market needs and includes high-quality mobility products, patient handling and bathroom safety products, stair lifts and car adaptations, as well as medical consumables and technical equipment. Handicare, headquartered in Moss, Norway, has long-established operations in Sweden, Denmark, Germany, the Netherlands, United Kingdom, Belgium, Poland, USA and Canada, and distributes its own products to an additional 30 markets. The Handicare Group reached a sales revenue of 225 million Euros in 2008.

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For more information, please contact:
Frank Barlin
Tel.: +49 (0)8142 4447770

Rens Schoenmakers
Senior Vice President
Tel.: +31 (0)492 593886

Per Gunnar Borhaug
President & CEO
Tel.: +47 69244458

More information here.

Sunrise announced that they have divested their US and South America Guardian business. (by the way the Guardian brand was never strong in their European business).

Sunrise CEO Michael N. Cannizzaro said:

For Sunrise Medical this is an important step in our strategy of being the industry’s leading Mobility and Seating Company. We will work closely with Medline to insure a smooth and seamless transition for all of our valued customers

Medline DME Division President said:

The acquisition of the Guardian line marks a significant step forward in the growth and value-added development of our Durable Medical Equipment division,” said Dave Jacobs, president, Medline Durable Medical Equipment division. “Guardian has a long-standing reputation for excellence and innovation in the healthcare industry and we are very pleased to have the opportunity to build on that tradition. In addition to bolstering our competitive position in the marketplace, the acquisition of this highly respected brand expands the range of products, services and value we can offer our customers

My take on this is that this move represents the next stage in industry (re) focus. Sunrise, a former pure play manufacturer, has chosen to exit a lower value added business that is increasingly dominated by people that have been smart in terms of how they source product from Asia. Medline has considerable expertise in this area.

Of interest perhaps is that this was conducted under Michael N. Cannizzaro’s watch. He was hired in 2007 by Vestarcapital partners - private equity shareholder of Sunrise. At about the same time Sunrise had been split into two parts - namely their respiratory business and wheelchair and other businesses.

Vestarcapital had taken Sunrise private in 2000 and speculation is that they may be looking for an exit.

Last week I wrote about Handicare, a relatively highly differentiated European based rehab company that is rapidly reaching the revenues of Sunrise, that acquired Linido, a relatively low value patient aid business last week.

Interesting…

Handicare continues it’s aggressive acquisition strategy in Europe, now entering the bath aid segment with Linido - a company based in the Netherlands. They further continue to build on their presence in the Netherlands following it’s Movingpeople and Freelift acquisitions.

Linido generally caters to the higher end bath products segment and is a relatively small acquisition for Handicare at 11 million Euros.

More information here:

Handicare AS acquires Linido

Moss – 3 November 2008 - Handicare AS acquires Linido, one of the leading European players within bathroom safety products for elderly and handicapped. This acquisition will bring the total operating revenue in Handicare to 250 million EURO. Handicare has now 1 000 employees in 10 different countries.

Linido has a leading position within bathroom safety products in Holland and has a strong position in the European market. The company is located in the Netherlands and has sales to some 15 export markets.

Linido has a 70 year old history, and has some 50 employees and operating revenue of 11 million EURO. The Managing Director Jitske Bijlsma, will continue her position in the company.

The health care company Handicare AS, owned by Herkules Private Equity Fund , was founded in 1986 and has operations in technical aids like wheelchairs and home care products in addition to adaptation of cars for elderly and physically disabled people. Through its subsidiary Puls, the Group also has a leading position in Norway in the sales of capital goods and consumables to hospitals and institutions. Handicare has its headquarters in Moss, Norway, and has subsidiaries in Sweden, Denmark, Germany, the Netherlands, England, Belgium, USA and Canada, and distributes its own products to an additional 30 markets.

The acquisition of Linido is part of Handicare’s growth ambitions. ”We will grow both organically and through acquisitions and we have a strong development internationally”, says CEO, Per Gunnar Borhaug in Handicare. ”With the number of elderly people increasing, combined with the wish for many elderly to stay at home as long as possible, we are now able to offer a wider range of bathroom safety products in addition to other products for home care and institutions. Linido is a company which strengthens our product assortment and together with Linido we aim to improve our position in several geographical markets”, says Borhaug. “Linido is a healthy company which will add great value to the group’s business activities and will play a major role in Handicares business area for Patient Handling and Bathroom Safety Products under Handicare Executive Hardy Brännströms leadership”, says Borhaug.

”We in Linido are exited to become part of the Handicare Group, says the managing director, Jitske Bijlsma in Linido. ”Together with Handicare we can continue to develop even further and we can exploit important synergies in some markets”, she says. ”Linido has a very positive development both in operating revenue and results through the last years, and I expect this to grow even further with Handicare as the new owner”, says Bijlsma.

Linido was owned by Berk Partners, a Dutch private equity firm, together with management.

Questions regarding the acquisitions should be addressed to:

Per Gunnar Borhaug
CEO
Handicare AS
Tel: 0047 90739441

Hardy Brännström
Managing Director
Patient handling & Bathroom safety
Tel: 0046 703840022

Jitske Bijlsma
Handicare Managing Director
Linido B.V.
Tel: 0031 153695440

This acquisition comes as no surprise and fits not only with the Permobil value added product line but establishes a larger footprint in the French market - a market so far largely shunned by other large Nordic players like Etac and Handicare. This represents another investment for Nordic Capital, relatively new owner of Permobil.

It also continues the buying spree of the “Homecare Vikings” which we wrote about two years ago and at the beginning of this year when Handicare had just completed two acquisitions within months of each other.

There is no question that “stand up” chairs, both manual and powered, offer higher margins to manufacturers. It is also true that this market segment is maturing with the mainstream large manufacturers having entered the market in the past year or two - better late than never.

Could we be heading back to those heady days in the mid 90’s when now market leaders Invacare and Sunrise went on big buying acquisition drives, or are the Scandinavian homecare vikings being more selective?

Here is what Hans Bergh, CEO at Permobil says:

As part of its international development strategy in the field of specialist medical equipment for the handicapped community, PERMOBIL has just carried out the acquisition of the French company LIFESTAND, situated in Lyon.
LIFESTAND, which was founded in 1978, specialises in the design and manufacture of « stand-up » wheelchairs. These wheelchairs, which can be operated manually, semi-electrically or fully electrically, enable a disable person to stand upright.
The company, which has a staff of 30 people, markets its products worldwide, with 80 % of sales into export markets. It has a subsidiary in both Germany and Belgium.

Annual sales exceeds 8M Euros, with good profitability.
This transaction strengthens PERMOBIL’s position in a key, potentially high growth, market in which it is already present with its powered wheelchairs !

“This acquisition gives a great opportunity to develop even further our position in this field thanks to LIFESTAND’s full gamut of top of the range « stand-up » wheelchairs, which cover all pathologies”, says PERMOBILS CEO Hans Bergh

For LIFESTAND, this merger with such a well-established group will enable it to widen its distribution network, particularly in the United States.

For more information :
www.permobil.com
www.lifestand.eu

It will be interesting to see the integration strategy of this Swedish and French company.

Per-Gunnar Borhaug, CEO Handicare AS and Hardy Brännström President Romedic AB announce the acquisition of Romedic by Handicare.

Handicare AS acquires RoMedic AB in Sweden and strengthens its position internationally within lifting-, transfer- and positioning products for elderly and handicapped.

Handicare’s revenues are estimated at over 225 million Euros ($320 million) putting it in our top 3 European homecare companies (similar category).

Handicare which is owned by the Ferd Private Equity Fund has been selectively acquiring higher value product companies in the Homecare space, including Freelift and Movingpeople in the Netherlands.

We originally wrote about Nordic companies on the acquisition trail end 2005 “The Return Of The Homecare Vikings”.

Seems like they have done pretty well from my vantage point.

As a brief follow - up to the post on this subject this week, we can now confirm that Invacare, Meyra and Handicare will not be attending this years Rehacare.

This is the first time in the history of this show that Invacare and Meyra have not attended.

No doubt the empty space will be used by others - most notably Asia manufacturers.

The reshaping of the industry continues…