Canada Pension Plan Investment Board (CPP Investments), through its subsidiary, CPP Investment Board Europe, and investment firm BC Partners, are jointly acquiring CeramTec, from BC European Capital X and its co-investors.
CeramTec is a ceramics specialist and global medtech business which will be jointly owned by CPP Investments and BC Partners Fund XI, with each holding a 50% stake. The capital contribution by CPP Investments in CeramTec will be approximately €800 million. Existing investors the Public Sector Pension Investment Board and Ontario Teachers’ Pension Plan Board, which invested in CeramTec as part of a consortium alongside BC Partners in March 2018, will exit their direct investments.
CeramTec provides high-performance ceramics for medical implants and industrial solutions, with 21 production sites and more than 3,500 employees across 11 countries. With a diversified product portfolio of more than 20,000 units, the company is active in two business lines: the medical business, which produces orthopaedic and dental ceramic implant components, and the industrial business, which focuses on specialised high-performance ceramics solutions.
Since BC Partners’ initial investment, CeramTec has extended its product development pipeline, undergone a programme of operational improvement, and accelerated its transformation into a diversified medtech platform, including through the recent acquisition of Dentalpoint, a provider of ceramic dental implants.
The shareholders stated they will support CeramTec as it expands its position as a diversified medtech platform, driving product development and strategic M&A.
Hafiz Lalani, managing director, head of Europe, direct private equity, at CPP Investments, said: “We are pleased to support the next stage of CeramTec’s growth in this attractive global market, in partnership with the company’s best-in-class management team and BC Partners, who bring deep sector knowledge. CeramTec’s unique medtech products optimise patient outcomes, improving the lives of millions of people worldwide, and provide us with an opportunity to deliver solid long-term risk-adjusted returns for CPP contributors and beneficiaries.”
Raymond Svider, chairman of BC Partners, added: “We are delighted to be working again alongside CPP Investments as we continue our partnership with CeramTec, a high-quality business that we believe continues to have significant growth potential. Over the past three years, CeramTec has significantly extended its product development pipeline, undergone a programme of operational improvement and undertaken strategic M&A to diversify its offering and broaden the platform, to ensure the company remains at the forefront of the sector. We look forward to working with our new partners as we support Dr Hadi Saleh and the rest of the management team in further consolidating CeramTec’s position as a high-growth, medtech market leader globally.”
Date published: August 17, 2021