With this acquisition Health in Code achieves its goal of doubling its size in three years

• This is Health in Code’s first acquisition since 2020 when it was created through the merger of three leading companies in the clinical genetics sector in Spain: Imegen, Genycell Biotech, and Health in Code
• Since 2020, Health in Code has delivered organic annual growth of more than 20%
• Health in Code’s expansion plans include the acquisition of other genomic diagnostics companies in Spain and the rest of Europe

Health in Code, a leading clinical genetic diagnostics company in Spain and an Alantra Private Equity portfolio company, has acquired genetic analysis laboratory Genologica to consolidate its leading position in Spain. Both parties have agreed not to disclose financial details of the transaction.

Founded in Malaga and with a strong presence in Andalusia, Genologica has more than 15 years of experience in genetic analysis for the prevention, diagnosis, assessment, and treatment of hereditary or genetic diseases. Its founders and main executives, Javier, José María and Daniel Porta, will continue to lead Genologica and will join Health in Code’s management team.

Health in Code is the result of the merger of three leading companies in the clinical genetics sector in Spain at the beginning of 2020: Imegen, Genycell Biotech and Health in Code. Alantra Private Equity is the majority shareholder of the Group, which includes among its shareholders the founding partners of the three former companies.

The acquisition of Genologica is the Group’s first add-on since its foundation and is in line with a buy-and-build strategy targeting companies or projects characterized by differentiation and clinical excellence.

Health in Code expects to reach €45m in revenues this year, of which approximately €4m will be contributed by Genologica. This represents an annual growth rate of more than 20% since 2020, doubling the initial size of the Group and demonstrating the sector’s strong growth.

The Group’s expansion plans include the acquisition of other medical genetics companies to complement its portfolio of services and products, as well as the organic development of new international markets based on a differential value proposition and unique technological capabilities. Health in Code currently has operational centers in Valencia, where it is headquartered, La Coruña, Granada and Malaga, employing more than 200 professionals. Last June, Health in Code installed the first NovaSeq X Plus in Spain, reaffirming its position as a leader in sequencing committed to whole genome studies.

Funds advised by Apax Partners LLP (“Apax”) and funds advised by Fremman Capital (“Fremman”) announced today that they have reached a definitive agreement to jointly acquire co-controlling stakes in Palex Medical (“Palex” or the “Company”). The selling shareholders are funds advised by Fremman, the current majority shareholder, and other minority shareholders.

Palex is the leading provider of high value-added medical technology (“MedTech”) equipment and solutions in Southern Europe. Following the transaction, Apax and Fremman will partner with Palex’s management team to help drive future value creation and pursue international growth.

Founded in 1955 and headquartered in Barcelona, Palex is the leading independent MedTech solutions provider in Southern Europe, focused on the marketing, sales and logistics of high value-added MedTech equipment for public and private hospitals and laboratories in Spain, Portugal and Italy. The Company has a strong reputation for innovation, quality and service and offers a wide product portfolio of over 150,000 product references from 600+ world-leading tier-1 manufacturers.

Xavier Carbonell, CEO of Palex, said: “We’re incredibly excited to continue our partnership with Fremman and to have secured the backing of Apax as a joint-lead investor for the next phase of our growth journey. Since 2007, the current management team has built Palex into a leading business that is trusted by the healthcare community, and I’m proud of our relentless focus on innovation, quality, and trust. We are very happy with the support that we have received, and will continue receiving from Fremman, which has allowed the Company to make the jump to become the leading provider of medical technology solutions in Southern Europe. By bringing a strong and experienced partner like Apax into our shareholder base, we expect to be able to further accelerate our growth, both locally and internationally. I’m confident we have the right strategic partners in place to execute on our ambitious plans and I’m excited for the future.” He also adds: “I would also like to take this opportunity to look back at all the successes achieved so far and thank Apheon and Corpfin Capital for their trust and involvement in the project”

Ricardo de Serdio, Founding Partner and CEO, Fremman Capital, added: “Since our entry in Palex in December 2021, we have pursued a clear strategy to support the Company in becoming an international leader in MedTech distribution. By leveraging our sector expertise, consolidation experience, and pan-European network, we have helped the Company complete 8 acquisitions – some of them transformational – across 4 countries, enter new geographies, and more than doubled the size of the business in less than two years. We are thrilled with the sale transaction and with our subsequent investment to continue supporting Xavier and the Company on this next phase of pan-European growth.”

Frank Ehmer, Partner, Apax, commented: “We couldn’t be happier to be partnering with Xavier and the wider Palex team, along with Fremman Capital. We have long identified the healthcare distribution sector as an ideal intersection between Apax’s deep expertise in MedTech and strong track record of investment in distribution-focused businesses. Throughout our engagement, it became immediately clear to us that Palex is a stand-out operator with the potential to establish itself as a pan-European leader. Palex has consistently outperformed over decades, with an unrivalled reputation and offering, and we look forward to building on this success to date, leveraging our experience and insights to help the team accelerate growth and execute on our joint vision for the future.”

The transaction is subject to customary closing conditions and is expected to close in Q4 2023. Financial terms were not disclosed.

Bank of America, Jefferies and Credit Suisse are acting as financial advisors on the transaction.

Pérez-Lorca and Uría Menéndez are acting as legal counsel to Fremman and management, Sullivan & Cromwell and Garrigues are acting as legal counsel to Apax. Dextra Corporate and Deloitte have participated advising the management.

-ENDS-

About Palex Medical

Palex, founded in 1955 by the Knuth family, is a company focused on the marketing, sales and logistics of high value-added MedTech equipment and solutions in the Spanish, Portuguese and Italian markets. The Company has a strong reputation for innovation, quality and service and offers a wide product portfolio (+150,000 references) from world-leading Tier-1 manufacturers (+600 partnerships) and own products across numerous therapeutic areas. Palex counts with ~928 employees, has an income forecast of 485 millions in 2023 and is headquartered in Sant Cugat del Vallès (Barcelona, Spain).

About Apax

Apax Partners LLP (“Apax”) is a leading global private equity advisory firm. For 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of more than $60 billion. The Apax Funds invest in companies across four global sectors of Tech, Services, Healthcare, and Internet/Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For further information about Apax, please visit www.apax.com.