Alleima Acquires German Device Manufacturer Endosmart

Looking to strengthen its position in the medical segment, Alleima has acquired Endosmart Gesellschaft für Medizintechnik GmbH (Endosmart), a German manufacturer of nitinol medical devices and components. The product offering includes kidney stone retrieval baskets and snares, and breast cancer tumor markers, as well as surgical instruments.

Neither company disclosed the deal’s terms.
 
Endosmart provides medical device companies with products and services primarily in the fields of urology, oncology, cardiology as well as instruments for orthopedic and vascular applications. The company has been folded into Alleima’s Kanthal division.
 
“Our strategy is focused on profitable growth, and we see a large potential within the medical industry, which is characterized by high growth and stable earnings. The acquisition of Endosmart further expands our capabilities and increases our current addressable market by adding new products and materials. We look forward to welcoming Endosmart to Alleima,” Alleima President/CEO Göran Björkman said. 
 
With complementary material technologies and Endosmart’s expertise and capabilities in processing nitinol, the acquisition is enabling forward-integration in the medtech value chain, Alleima executives noted. The product and service offering, certifications, and existing customer base of Endosmart expands the current addressable market for Alleima. The combined expertise and footprint will drive further product development and geographical expansion through cross sales between the product portfolios and regions, as well as possibilities of joint utilization of production and application capabilities.

“We have a long-term strategic commitment to grow our medical business. With the acquisition of Endosmart, we will forward-integrate to strengthen our medical wire component offering while adding R&D capabilities that will be leveraged to develop and offer new unique solutions,” said Gary Davies, head of Kanthal’s Medical business unit.
 
Endosmart was founded in 2002, has more than 90 employees and is headquartered in Karlsruhe, Germany. For the rolling 12 period ending in September 2022, it generated approximately SEK 105 million in revenue, and an EBIT margin neutral to Kanthal. The parties have agreed not to disclose the purchase price. Impact on Alleima’s earnings per share will initially be neutral.
 
Alleima AB, formerly Sandvik Materials Technology, is a global manufacturer of high value-added products in advanced stainless steels and special alloys as well as solutions for industrial heating. Based on long-term customer partnerships and materials technology, Alleima develops products for demanding applications and industries. Its offering includes products like seamless steel tubes for the energy, chemical and aerospace industry, precision strip steel for white goods compressor, air conditioners and knife applications, based on more than 900 active alloy recipes. It also includes ultra-fine wires for medical and micro-electronic devices, industrial electric heating technology and coated strip steel for fuel cell technology for cars, trucks, and hydrogen production.  Alleima, with headquarter in Sandviken, Sweden, and SEK 13.8 billion in 2021 revenues, has more than 5,500 employees and customers in approximately 90 countries. 
 
Endosmart is an expert in processing the shape memory alloy nitinol and offers solutions and services for medical device manufacturers including conceptual design of ideas, prototype development, series production, and support during the registration process. Applications are found within urology, oncology, cardiology as well as the orthopedic and vascular areas. With more than 90 employees, Endosmart is headquartered in Karlsruhe, Germany.