Corin set for £30.5m takeover (Insider Media)
Italian consortium 2IL Orthopaedics Ltd has made an offer of £30.5m to acquire orthopaedics manufacturer Corin.
The Cirencester-based business revealed last week it was in “advanced discussions” about a possible takeover with 2IL, a newly incorporated business formed for the purpose of the acquisition.
The deal is to be funded through the existing cash resources of the 2IL shareholders.
Once the deal is declared unconditional, Stefano Alfonsi will be appointed chief executive with current executive chief Peter Huntley leaving the business after assisting with the handover.
Chairman Linda Wilding and non-executive director David Young will also resign from the board once the offer is declared unconditional.
Wilding said: “Under Peter Huntley’s leadership, Corin has significantly invested in and successfully developed a range of new and revised hip and knee products. It now has a comprehensive product portfolio showing good organic growth which has substantially reduced the group’s historical reliance on its metal on metal products.
“The group is now successfully competing on the world stage but in an industry dominated by much larger players, lacks the necessary scale to leverage its investments and operational infrastructure.
“Today’s offer enables shareholders to realise a significant cash premium to Corin’s recent share price and provides an attractive opportunity for our customers and employees to benefit from the further investments planned in the group.”
Marco Fumagalli, director of 2IL, added: “Peter began the task of turning Corin into an expanding medical devices business with a platform of fantastic modern products. We are delighted to be able to offer a growing future to the business and look forward to completing our offer and working with all at Corin to deliver our goals.”
All of the company’s employees will remain with the business and there are no plans to change the principal locations of the business, 2IL added.
Rothschild is the financial adviser to Corin and Panmure Gordon is the financial adviser to 2IL.