Coloplast, a Danish medical device manufacturer, has recently reached an agreement to acquire Kerecis, an Iceland-based wound care company, for $1.2 billion. This acquisition will give Coloplast control of a business that is projected to achieve a 5
0% sales growth this year. Kerecis specializes in the sale of a unique wound care product made from fish skin, which propelled their sales to $74.5 million in 2022. Coloplast plans to operate Kerecis as an independent unit, and as a result of this acquisition, the company has raised its long-term organic growth forecast to a range of 8% to 10%.
Coloplast is already an established player in the wound care market and boasts a portfolio that includes the popular Biatain foam dressing. In the second quarter, the Danish medtech company experienced a 12% growth in wound care sales, although this growth was limited due to backorders. Now that this issue has been resolved, Coloplast is working to expand its capacity and build momentum in key markets such as France, Germany, and the U.K.
This acquisition of Kerecis marks a significant step for Coloplast in further advancing its wound care growth strategy. Kerecis offers a unique product made from fish skin, which competes with standard transplantation products derived from human and pig tissues. Notably, Kerecis' fish skin undergoes lighter processing since there is no known viral transfer risk between North Atlantic cod and humans. This reduces the risk of infection for patients while still improving wound healing. Kerecis has already successfully treated thousands of severe wounds, primarily in the U.S., and it is considered the fastest-growing company in the biologics care segment.
Coloplast's CEO, Kristian Villumsen, expressed enthusiasm for the acquisition, stating, "So far, the products have successfully healed tens of thousands of severe wounds, primarily in the U.S. Kerecis is today the fastest growing company in the biologics care segment and it is, we believe, an emerging category leader, therefore well positioned to continue to outgrow the market. I look forward to building a truly global wound care franchise”. The acquisition is currently subject to regulatory approval and requires a 90% acceptance threshold. Coloplast anticipates closing the deal in the fourth quarter of this fiscal year, with 77% of Kerecis' shareholders already agreeing to sell their holdings. The total value of the acquisition is $1.3 billion, with a $1.2 billion upfront payment from Coloplast.
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