Internacional de la Medicina

Activity
Distribution of medical products
Acquired
Jul 1992
Realised
Jan 1997
Sector
Healthcare

Business
Intermedica was a Spanish distributor of medical products for the anaesthesia and radiology medical sectors in Spain. Its main customers were hospitals and clinics throughout Spain owned by the Spanish national health service. Its suppliers were overseas medical equipment manufacturers.

In July 1992 Cinven supported a buyout by the incumbent management of the business, which was then owned by a conglomerate whose principal businesses were in other sectors, making it unwilling to finance the company’s growth.

Strategy
In a market where healthcare expenditure was increasing year by year, and margins were healthy, Cinven’s strategy was to roll out the network for existing products and add more products to its portfolio to sell to its existing customers. In addition Cinven planned to implement an improved computer system to control stocks more tightly.

Outcome
In January 1996 over half of the investors’ original investment was repaid by means of the company’s repurchase of shares. A year later the sale of the business to a competitor company was completed.

Multiple returned on investment: 1.3x