In a strategic move to expand its presence in the advanced wound care market, Denmark-based healthcare company Coloplast has announced the acquisition of Kerecis, a leading producer of wound care biologics, for a staggering $1.3 billion. The deal, which includes an upfront cash payment of $1.2 billion, is expected to position Coloplast as a major player in the rapidly growing U.S. biologics market.
Coloplast views the acquisition of Kerecis as an attractive opportunity to leverage the company's innovative technological platform and enter the advanced wound care segment. Kerecis has developed a patented fish skin-based platform that closely resembles human skin, offering unique clinical differentiators, sustainability, and scalability. This technology has shown promising results in improving wound healing, making it a valuable addition to Coloplast's product portfolio.
Kerecis has experienced significant growth since its establishment in 2016, with last year's revenue reaching an impressive $74.7 million. Coloplast expects the acquisition to not only bolster its gross margin but also drive substantial revenue growth. The company has revised its long-term organic growth estimate from 7%–9% to 8%–10% for the fiscal year 2022–23, indicating its confidence in Kerecis' potential to contribute to its overall success.
Following the acquisition, Coloplast intends to operate Kerecis as a standalone business unit under its own brand. This approach will allow Kerecis to retain its unique identity and leverage Coloplast's expertise and resources in areas such as business support. By providing the necessary support and integration, Coloplast aims to facilitate Kerecis' growth and maximize its potential within the advanced wound care market.
To finance the deal, Coloplast plans to raise equity funds in the fourth quarter. The company has already secured the support of 77% of Kerecis shareholders, signaling their confidence in the transaction. However, the deal is subject to government clearance and requires a minimum acceptance threshold of 90% to proceed.
The acquisition of Kerecis represents a significant milestone for Coloplast, marking its entry into the burgeoning field of advanced wound care. By harnessing Kerecis' cutting-edge technology and leveraging its own market expertise, Coloplast aims to establish a strong foothold in the U.S. biologics market and capitalize on the growing demand for innovative wound care solutions.
With its long-standing reputation for delivering high-quality healthcare products, Coloplast is well-positioned to make a transformative impact in the advanced wound care sector.