London-based BC Partners together with Toronto-based Canada Pension Plan Investment Board (CPP Investments), via its wholly owned subsidiary CPP Investment Board Europe S.a.r.l., have agreed to jointly acquire Plochingen, Germany-based CeramTec GmbH.
CPP Investments is providing approximately €800 million ($947.8 million USD) for a 50% stake in the business. Once the transaction is complete, CPP Investments and BC Partners Fund XI will jointly own CeramTec.
CeramTec is one of the world’s leading manufacturers of advanced ceramics for medical implants and customized industrial solutions and services customers out of 21 production sites across 11 countries.
CeramTec’s ceramic implant components are routinely used in orthopedics, dentistry, and veterinary medicine and are, in the company’s words, “highly biocompatible, extremely wear resistant and durable.” CeramTec is well known in the orthopedics industry for its pink BIOLOX® delta ceramics which are used for hip implants. CeramTec’s ceramics are also used in medical equipment, including surgical medical equipment and x-ray and MRI machinery.
OTW spoke with CPP Investments Managing Director, Head of Europe, Direct Private Equity Hafiz Lalani about the company’s decision to acquire CeramTec. Lalani told OTW, “CeramTec was a deliberate, targeted investment for us—they serve essential consumer/patient needs and their solutions significantly improve the quality of life for millions of people globally.”
Lalani continued, “As a business it already meets our criteria of scale and profitability, and we see an opportunity to leverage our experience, network and global reach to build an even larger, broader and stronger business.”
Lalani also discussed the company’s goals for the remainder of the year. “Going forward, we expect the company will continue on its strong growth path—continued expansion into adjacencies organically and through acquisition. We also support strong investment in R&D [research and development] which will improve patient outcomes even more.”
