On February 28, 2022, Altaris Capital Partners, a private equity firm focused on the healthcare industry, announced the acquisition of Intricon Corporation, a leading medical device CDMO, for $24.25 per share, implying an equity value of $241 million, or $235.7m net of acquired cash. Intricon designs, develops, manufactures, and packages miniature interventional, implantable, and body-worn medical devices. The company has a broad range of capabilities, including precision molding, micro-electronics, micro-coils, ultra-low power digital signal processing, and complex extrusion. Intricon serves a variety of customers in the medical device industry, including original equipment manufacturers (OEMs), startups, and research institutions.
Medical Device OEM / CDMO EBITDA Multiples
According to the fairness opinion prepared in support of the transaction, Intricon was projected to generate ~$14 million of estimated 2022 adjusted EBITDA, implying a multiple of 16.8x EBITDA. This is on the high end of historical medical device CDMO and OEM multiples, likely due to the firm's strong position in a niche market, its high near-term growth rate, and a long runway for future growth.
Intricon Financial Projections
Intricon's management projections at the time of the deal are presented below.
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The Scope Research Healthcare M&A Valuation Database currently has financial details for 258 medical device deals going back to 2010, 132 of which include reported EBITDA multiples. The medical device M&A deals can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
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