Zydus to acquire 85.6% stake in French orthopaedics firm Amplitude Surgical for over ₹2,400 crore

Zydus Lifesciences Limited (“Zydus”) has entered into exclusive negotiations to purchase a controlling 85.6 percent stake in France-based Amplitude Surgical SA – an entity specialising in high-quality lower-limb orthopaedic products and solutions – for a deal valued at €256.8 million (over ₹2,400 crore).

The stake will be purchased from PAI Partners and Amplitude Surgical’s management, as well as two minority shareholders, the company stated in a regulatory filing with the exchanges. “ Subject to closing of the controlling Block Acquisition, the Company would make a mandatory simplified cash tender offer. If the conditions are met at the end of the tender offer, the Company intends to proceed with a compulsory acquisition of the remaining shares from the minority shareholders (squeeze-out) and to delist the Target Entity,” the company stated adding that acquisition of the entire 100 per cent equity share capital would work out to €300 million. Amplitude Surgical SA is currently listed on Euronext Paris (Paris Stock Exchange).

The proposed acquisition shall act as a platform to execute our global MedTech strategy and a natural extension for Zydus having a proven track record in life sciences and wellness segments, Zydus stated. The proposed acquisition is subject to consultation with the Social and Economic Committee (employee representative body) of Amplitude Surgical and the approval of the French Minister of Economy as part of the control of foreign investments in France.

Sharvil Patel, Managing Director, Zydus Lifesciences Limited, stated “Our legacy in science, health and innovation has enabled a deep understanding of patient journey and their care pathways. We believe this was a natural extension in the field of medical technology. Our commitment to quality excellence, continuous investments in R&D and expertise in manufacturing will guide our foray into highly specialised MedTech products, adding a new dimension to our operations. In Amplitude Surgical, we see several medium-term and long-term growth opportunities with respect to portfolio, capabilities, manufacturing and geographies.”

The medical device market alone is estimated at over half a trillion dollars globally. This market is broadly divided into segments such as implants, equipment, consumables and in-vitro diagnostics. Olivier Jallabert, CEO and Founder, Amplitude Surgical, stated “The Amplitude Surgical team and I are delighted to join Zydus. This acquisition by a worldwide healthcare leader is a testament to the successful development of the Company over the last 25-plus years, originally as a national orthopedics challenger and today as a European leader. I would like to thank PAI Partners for their trust and continuous support in our growth journey. We have demonstrated our resilience in periods of uncertainty while driving the transformation of the Company, developing our commercial, industrial, and technological capabilities.”

The Board of Directors of Amplitude Surgical has favourably welcomed Zydus’s proposal and has set up an ad hoc committee made up of 3 members, two of which are independent directors, and appointed Finexsi as the independent expert for the Board of Directors of Amplitude Surgical.