Zydus Lifesciences to buy 86% stake in Amplitude Surgical for $280 million

Zydus Lifesciences has entered into negotiations with PAI Partners, Amplitude Surgical's management, as well as two minority shareholders to acquire 85.6 per cent of the company's share capital

Zydus Lifesciences on Tuesday said it has entered into exclusive negotiations to acquire a majority stake in France-based Amplitude Surgical for 256.8 million euros (nearly $280 million).

The company has entered into negotiations with PAI Partners, Amplitude Surgical's management, as well as two minority shareholders to acquire 85.6 per cent of the company's share capital, the Ahmedabad-based drug maker said in a regulatory filing.

Purchase consideration amounts to 256.8 million euros for 85.6 per cent of the outstanding shares and voting rights of Amplitude Surgical, it added.

Amplitude Surgical is a European MedTech leader in high-quality, lower-limb orthopaedic technologies.

The company provides numerous value-added innovations to best meet the needs of patients, surgeons and healthcare facilities.

This includes the design and development of knee and hip prostheses, which are implanted in place of damaged or worn-out joints.

In fiscal year ended June 30, 2024, Amplitude Surgical generated sales of 106.0 million euros and EBITDA of 27.1 million euros on a consolidated basis.

"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," Zydus Lifesciences MD Sharvil Patel said.

In Amplitude Surgical, the company sees several medium-term and long-term growth opportunities with respect to portfolio, capabilities, manufacturing and geographies, he added.

Olivier Jallabert, CEO and Founder, Amplitude Surgical, said the 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," he added.

Zydus said the transaction which remains subject to entering into definitive agreements for the block acquisition, will be submitted to Amplitude Surgical employee representative bodies.

It will also be subject to customary conditions precedent, including the transaction being authorised by the French Minister of Economy as part of the control of foreign investments in France, the completion of the re-investment by Olivier Jallabert of a portion of his proceeds into the Amplitude group, as well as the absence of qualified material adverse events, it added.

The Board of Directors of Amplitude Surgical has favourably welcomed Zydus's proposal and has set up an ad hoc committee made up of three members, two of which are independent directors, it said.

On Tuesday Amplitude Surgical and Zydus entered into a tender offer agreement under which Zydus undertook to file the tender offer (subject to completion of the Block Acquisition), and Amplitude Surgical undertook to cooperate with Zydus in this respect. Shares of Zydus Lifesciences were trading 0.9 per cent up at Rs 901.20 apiece on BSE.