Manager Magazin, 13 March 2024 “Ottobock Confirms Repurchase of Shares from EQT”
Link to original article (German)
The Näder family, owners of Ottobock, are regaining complete control of the company. Both parties have confirmed that the repurchase of shares in the prosthetics manufacturer from investor EQT will proceed. Ottobock anticipates record sales for 2023.
It is now confirmed that the repurchase, with a premium, will go ahead. Seven years ago, the Näder family, proprietors of Ottobock, sold a 20% stake in the prosthetics manufacturer to Swedish financial investor EQT. The company will now return to full family ownership, as confirmed by both sides on Wednesday.
The investment has evidently paid off for EQT, even though Hans Georg Näder (62) cancelled the originally planned IPO. According to a person familiar with the transaction, the company from Duderstadt near Göttingen was valued at €5.5 billion at the time of sale, compared to €3.15 billion when EQT initially invested.
Financial news agency Bloomberg had previously reported on the planned sale. According to Bloomberg, the family intends to secure €1.1 billion in financing for the repurchase, including from credit funds managed by Carlyle, KKR, Hayfin Capital, and Macquarie.
Company Expects Record Sales Since EQT’s investment in 2017, Ottobock has increased its revenue from around €880 million by approximately 8% per year, according to a company statement. For the full year 2023, Ottobock anticipates revenue of around €1.5 billion for the first time in its history. The operating profit (EBITDA) has doubled to approximately €280 million. The company expressed optimism about continuing its growth trajectory.
EQT Partner Johannes Reichel considered the investment a success: “When we invested in Ottobock in 2017, we saw the enormous potential of this ‘hidden champion’ that pursues a clear purpose and holds a market-leading position in the healthtech industry. Since then, in close partnership with Hans Georg Näder and the management team, we have elevated the company to a new level of growth - this is evident both in new innovative products benefiting patients and in the economic development.”
Näder stated that the company, founded in 1919, has become more professional through its collaboration with EQT. “This has laid a strong foundation for the next growth phase of our company.” Ottobock will remain a pure family business. In 2022, Näder unexpectedly put the long-planned IPO on hold and replaced the entire top management. At that time, Ottobock had targeted a valuation of five to six billion euros.
Until now, 80% of Ottobock was owned by Näder Holding GmbH, led by Managing Director Hans Georg Näder. He is also Chairman of the Supervisory Board of Ottobock SE. Operationally, Ottobock is led by CEO Oliver Jakobi, who took over from Philipp Schulte-Noelle at the end of 2022. Ottobock and the Näder family are being advised on the deal by Deutsche Bank, Goldman Sachs, and a team from the law firm Freshfields led by Christoph H. Seibt, among others.
The company was founded 105 years ago as Orthopädische Industrie GmbH. Later, Otto Bock took over the company and, under its current name, made it one of the most important players in the European prosthetics market. The Näder family are direct descendants of Otto Bock.