Gyrus Capital agrees to acquire LRE Medical from AIS Global

Gyrus Capital and AIS Global are pleased to announce that they have entered into an agreement for Gyrus Capital to acquire LRE Medical, a leading provider of complex devices and analytical instruments for the life sciences industry.

Headquartered in Nördlingen, Germany, LRE Medical supports its global customer base through a comprehensive service offering providing high-quality engineering solutions and manufacturing for medical and life science diagnostic equipment.

LRE Medical was founded in 1961 and employs more than 250 people and operates two sites in Germany. LRE Medical has a track-record of providing innovative, first-to-market solutions to leading OEMs in the industry. LRE Medical has been part of AIS Global since 2004 and in 2019, AIS Global became a portfolio company of KPS Capital Partners, LP (“KPS”). The carve-out represents a central pillar of Gyrus Capital’s investment strategy.

Dr. Robert Watson, Managing Partner at Gyrus Capital, said, “We are extremely excited to partner with the LRE Medical management team for the next phase of the company’s growth. LRE Medical has an excellent reputation and has successfully established themselves as the market leader in complex point of care diagnostics.”

LRE Medical operates in a fast-growing market driven by a paradigm shift of bringing diagnostic testing closer to the patient. Guy Semmens, Managing Partner at Gyrus Capital added “Near-patient testing enables rapid clinical decision-making and improved patient outcomes while eliminating the logistics costs of traditional laboratory testing. These benefits to society are a core theme within our healthcare investment strategy”.

Jürgen Neumann, President of LRE Medical, said “We are thrilled to partner with Gyrus Capital on this exciting new chapter for LRE Medical. Gyrus Capital and LRE Medical are deeply committed to investing in the business to drive future growth, while continuing to provide market-leading customer solutions in the area of complex point of care diagnostics. We thank AIS Global and KPS for their support and partnership to help drive transformational growth in recent years.”

Completion of the transaction is expected in the third quarter of 2023 and is subject to customary regulatory approvals.

Advisers

Advisers to Gyrus Capital include: Deloitte (Financial, Tax & Debt); Candesic (Commercial); Baker McKenzie & Gowling WLG (Legal); DSS+ (ESG).

Lincoln International LLC acted as financial adviser and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS and AIS Global.

About Gyrus Capital

Gyrus Capital is a European investment firm dedicated to transformational investments in the healthcare and sustainability sectors. Based in Geneva, Switzerland, Gyrus invests in businesses that address structural needs of society and the environment, and that are positioned for long-term, sustainable growth. Gyrus has a focus on complex transactions, with particular focus on corporate carve outs and entrepreneur successions in the €50 million to €500 million range. A renowned group of experienced operating partners and industry experts support Gyrus in its active investment and value-creation approach in close partnership with entrepreneurs and managers.

To learn more, please visit www.gyruscapital.com

About AIS Global

AIS Global is the leading global designer and manufacturer of human-machine interface (“HMI”) solutions for original equipment manufacturers worldwide in the medical, commercial, industrial, and gaming end-markets. Headquartered in Coeur d'Alene, ID, AIS Global has seven facilities across the United States, United Kingdom, Germany, Taiwan, and China, including four key manufacturing facilities.

About KPS Capital Partners

KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $14.9 billion of assets under management (as of December 31, 2022). For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness, and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies generate aggregate annual revenues of approximately $22.3 billion, operate 233 manufacturing facilities in 27 countries, and have approximately 53,000 employees, directly and through joint ventures worldwide (as of December 31, 2022). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.