Canadian Manufacturing

CPPIB announces acquisition of CeramTec

CeramTec is a global MedTech platform and provider of ceramics for medical implants and bespoke industrial solutions.

August 17, 2021  by CM Staff

TORONTO and LONDON — On Aug. 17, Canada Pension Plan Investment Board, through its wholly owned subsidiary, CPP Investment Board Europe S.àr.l, and BC Partners, an international investment firm, announced an agreement to jointly acquire the CeramTec, from existing owner BC European Capital X and its co-investors. CeramTec is a ceramics specialist and global MedTech business. On completion of the transaction, CeramTec will be jointly owned by CPP Investments and BC Partners Fund XI.

CeramTec is a global MedTech platform and provider of ceramics for medical implants and bespoke industrial solutions, with 21 production sites and over 3,500 employees across 11 countries. With a product portfolio of more than 20,000 units, the Company is active in two business lines: the medical business, which produces orthopedic and dental ceramic implant components, and the industrial business, which focuses on mission-critical high-performance ceramics solutions.

Since BC Partners’ initial investment in March 2018, CeramTec has significantly extended its product development pipeline, undergone a programme of operational improvement, and accelerated its transformation into a diversified MedTech platform, including through the recent acquisition of Dentalpoint, a company in the field of ceramic dental implants.

The new ownership structure reflects both CPP Investments’ and BC Partners’ confidence in CeramTec’s business model and future growth prospects, and provides the opportunity to realise additional value. The shareholders will support CeramTec as it expands its leading position as a diversified MedTech platform, driving ongoing product development and strategic M&A in a sector underpinned by strong secular growth trends.

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Hafiz Lalani, Managing Director, Head of Europe, Direct Private Equity, at CPP Investments, said, “We are pleased to support the next stage of CeramTec’s growth in this attractive global market, in partnership with the Company’s best-in-class management team and BC Partners, who bring deep sector knowledge. CeramTec’s unique MedTech products optimise patient outcomes, improving the lives of millions of people worldwide, and provide us with an opportunity to deliver solid long-term risk-adjusted returns for CPP contributors and beneficiaries.”

Under the new ownership structure, CPP Investments and BC XI, together with co-investors, will each hold a 50% stake in the Company.

Dr. Hadi Saleh, Chief Executive Officer of CeramTec, said: “We are excited to continue working with the team at BC Partners, whose support since 2018 has enabled us to successfully expand our product range as we diversify our MedTech footprint. Moreover, we are delighted to welcome our new partners in CPP Investments, whose sector expertise and strategic counsel we have already been impressed by. We believe that together we are well-positioned to continue working towards our aim of being the undisputed global leader in high-performance ceramics in the eyes of our customers.”