Healthcare investor SHS sells homecare specialist medigroba to Löwenstein Group
- In the course of a successful succession arrangement, Tübingen-based SHS Gesellschaft für Beteiligungsmanagement mbH sells its shares in medigroba GmbH to Löwenstein Group
- With SHS as majority shareholder, medigroba has more than doubled revenue and tripled EBITDA in the last four and a half years
- Due to the continuing trend towards outpatient care, the medium-sized homecare specialist expects to continue its dynamic growth course
In the course of a succession plan, Tübingen-based healthcare investor SHS, together with the management, has led the Balingen-based homecare specialist medigroba GmbH on a dynamic growth course during the past five years. With the integration of medigroba into Löwenstein Group, the medigroba management wants to continue the success story.
Tübingen-based healthcare investor SHS Gesellschaft für Beteiligungsmanagement mbH announces the sale of the Balingen-based homecare company medigroba GmbH to Löwenstein Medical GmbH & Co. KG (Bad Ems).
In the course of a succession plan, SHS took over the company together with the two managing directors at the end of 2016. Founded as a medical wholesaler in 1975, medigroba plays an important role in the outpatient care in several German regions. Today, this so-called homecare business accounts for 95 percent of medigroba’s turnover. Since the entry of SHS in 2016, sales have more than doubled through organic growth. The company’s EBITDA was even tripled.
“We attribute this remarkable success primarily to the targeted expansion of sales regions, the development of new fields of care and the motivated efforts of the management and the entire medigroba team,” says Uwe Steinbacher, Managing Director and Partner at SHS. “The company has selectively expanded sales regionally, from its headquarters in Baden-Württemberg, then in North Rhine-Westphalia in 2017 and in Hesse and Rhineland-Palatinate in 2019.”
Today, medigroba counts 120 employees, almost half of them are registered nurses. medigroba’s customers include clinics, care facilities, health insurance companies and specialised medical practices. Patients receive equipment and services from qualified staff, such as ventilation, tracheostoma care, oxygen, monitoring, enteral and parenteral nutrition, wound care, pain therapy, nursing beds and more.
The National Association of Statutory Health Insurance Funds (Spitzenverband Bund der Krankenkassen / GKV) estimates the total market volume for outpatient medical aids at approximately 9 billion euros, which corresponds to 3.7 per cent of the GKV’s total expenditure of around 240 billion euros in 2019.
“Currently, about 6 million patients in Germany use outpatient care with medical aids (homecare),” says medigroba Managing Director Frank Franzen. “In 2030, there will be more than 9 million patients who need homecare. That is a huge market potential.“
Co-Managing Director Bodo Weinitschke is confident: “The importance of qualified medical care outside the clinics will continue to increase. Under the umbrella of Löwenstein Group, we want to continue the dynamic growth that we have achieved over the recent years with the help of medtech-experienced SHS. Therefore, we will selectively expand our sales into new regions and offer new services to patients in existing regions.”
medigroba expects numerous synergies from the integration into Löwenstein Group, which will help both companies to expand their market position. Löwenstein Group, founded in 1986 and based in Bad Ems, is today one of the leading providers in the fields of respiratory medicine, sleep medicine, neonatology, and anaesthesia with 1950 employees in Germany.
“We are confident that medigroba GmbH, now part of Löwenstein Group, will become a leading player in the German homecare market. Frank Franzen and Bodo Weinitschke are experienced managers with strong leadership skills and excellent networks. They think strategically and can motivate a team to top performance,” SHS Managing Director Uwe Steinbacher is pleased to say. “Löwenstein will have a lot of fun with this acquisition!”
About SHS Gesellschaft für Beteiligungsmanagement mbH:
SHS Gesellschaft für Beteiligungsmanagement is based in Tuebingen, Germany, and invests in medical technology and life science companies with a focus on expansion financing, changes in shareholder structures and successor situations. SHS holds minority as well as majority interests. The company was founded in 1993 and has since gained extensive experience as an industry investor which supports the growth of its portfolio companies through a network of partnerships regarding the introduction of new products, regulatory issues or entering new markets. The SHS fund’s European based investors include pension funds, strategic investors, funds of funds, family offices, entrepreneurs and the SHS management team. The AIFM-registered company invests up to €30 million in equity capital and volumes exceeding this amount are implemented with a network of co-investors. SHS is currently investing from its fifth fund which received capital commitments of more than €130 million. Further information: www.shs-capital.eu
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About medigroba GmbH:
medigroba GmbH was founded in 1975 as a medical wholesaler (medical supplies, diabetes, etc.) in Balingen and started as a family business with 6 employees. In the 1990s, the company specialised as a homecare provider in Baden-Württemberg. In 2016, SHS acquired the majority of shares in medigroba GmbH and has since supported the company’s growth strategy. The involvement of the former management in the direction of the company and the preservation of the family-like working atmosphere contributed significantly to the motivation of the staff and resulted in above-average growth in the following years. In 2020, medigroba GmbH had locations in BW, NRW, Hesse, RPF and Bavaria. The workforce grew to around 120 employees at the turn of the year. In addition, medigroba was named “Top Employer in Medium-Sized Businesses in 2019 and 2020” by the magazine FOCUS-BUSINESS and Kununu Germany.
medigroba GmbH offers a complete service for supplying patients with aids in care facilities and in the home environment. In addition, products are offered for the facility itself (e.g. hygiene / disinfection). medigroba’s range of services is holistically oriented and includes:
- Medical technology (ventilation, monitoring, oxygen)
- Homecare (enteral nutrition, wound care, abdominal stoma, and incontinence)
- Infusion therapies (parenteral nutrition, pain therapy, antibiotics)
- Special care for children
- Rehabilitation aids (wheelchairs, beds, etc.)
- Hygiene management
- Other (diabetes, practice supplies, care aids)
medigroba is a member of the medical supply store association Reha Vital and thus has contracts with all relevant health insurance companies. The company maintains its own medical technology workshop for the preparation and repair of the devices and its own delivery service. The medigroba Academy, a certified training centre, trains more than 1,000 nursing staff each year with increasing demand. medigroba’s quality management has recently been certified according to DIN EN ISO 13485:2016. Further information: www.medigroba.de
About Löwenstein Medical GmbH & Co KG:
The will to provide service, pronounced customer proximity and customer satisfaction, and innovative strength in the development of new technologies in medical technology are the decisive factors that have made Löwenstein Medical a leading medical technology company. Löwenstein Medical’s employees in the office and in the field, as well as in numerous branches and sleep respiratory centres, are committed to the health and quality of life of patients with a high level of dedication and identification and great expertise. Löwenstein Medical’s range of services is continuously being expanded and extends from intensive care ventilation, neonatology, anaesthesia, sleep therapy, sleep medicine and sleep diagnostics to outpatient ventilation and oxygen supply. Löwenstein Medical is an innovator, manufacturer, and distributor. For this purpose, almost 2000 employees are available in 28 branches and almost 200 sleep respiratory centres in Germany, for the supply of clinics and more than 700,000 patients. In addition, Löwenstein Medical has its own subsidiaries in Austria, Great Britain, France, the Netherlands, Israel, China, Denmark, Belgium, and Switzerland. In partnership with leading global manufacturers, Löwenstein Medical is a pioneer and market leader in new specialist disciplines such as sleep and respiratory medicine. In its Homecare, Sleep Therapy, Ventilation, Neonatology and Anaesthesia divisions, Löwenstein Medical itself has been developing and producing cutting-edge technology “Made in Germany” for the world market for over 30 years and will continue to do so in the future, exporting life-sustaining medical technology for clinics, doctors, and patients to over 100 countries. Löwenstein Medical ensures the health, satisfaction, and quality of life of patients with products and services at the highest level. This is a claim that has been the basis of Löwenstein Medical’s success, in the past as well as in the future. Further information: https://hul.de