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HEILBRONN, Germany–(BUSINESS WIRE)–zfhn Zukunftsfonds Heilbronn, one of the largest private venture capitalists in Germany, has sold medical technology company XENIOS AG to Fresenius Medical Care AG & Co. KGaA (Fresenius Medical Care). XENIOS AG is an internationally active medical technology company focusing on the treatment of lung and cardiac failure.

In 2008, zfhn took over Novalung GmbH, a manufacturer of artificial lungs, and in 2010, it took over Medos Medizintechnik AG, a maker of state-of-the-art blood pump systems, among other things. In 2013, both companies were merged under one roof in the newly formed XENIOS AG with now more than 260 employees. XENIOS provides innovative solutions for cardiovascular system support during serious illnesses and operations. XENIOS has established itself internationally with innovative systems for minimally invasive lung and cardiac assistance. Continued growth is assured based on its ongoing research and development activities. At the beginning of the year, XENIOS AG invested in the Canadian specialist firm XOR Labs in order to further expand its expertise in the field of human lung transplantation.

“The long-term strategy of Zukunftsfonds Heilbronn continues to unfold. With Fresenius Medical Care AG, we have succeeded in bringing a true world market leader from the high-growth healthcare sector to Heilbronn,” comments a pleased Thomas R. Villinger, CEO of zfhn. Throughout the negotiations with numerous interested parties, zfhn emphasized that the company’s Heilbronn site would be secured and further expanded. “Our top objective is to use the activities of zfhn to make Heilbronn a hub for many regional technology-focused companies. The takeover of XENIOS AG by Fresenius Medical Care AG will ensure a strong appeal for our region internationally and entice other innovative companies from the medical technology segment to look at our region,” continues Villinger. He announced that the profits from the sale would go toward the zfhn fund assets in order to ensure additional acquisitions that will expand the forward-looking location.

“Thanks to the longtime, professional support and guidance of zfhn in growing XENIOS AG, we are now able to take the next major step. Under the umbrella of Fresenius Medical Care AG, we will be able to continue our international growth course, particularly in North America and China, and open up new markets with innovative products. We are confident that our know-how in the field of cardiovascular system support will be a significant enrichment for the portfolio of Fresenius Medical Care AG. Having the support of a major partner gives us the ability to accelerate our growth course,” explains Dr. Georg Matheis, chairman and founder of XENIOS AG.

By entering the treatment of heart and lung diseases (cardiac and pulmonary diseases), Fresenius Medical Care intends to expand its leading position in the area of extracorporeal organ support. Dominik Wehner, the Management Board member who oversees the regions of Europe, the Middle East and Africa at Fresenius Medical Care, said: “We are acquiring an attractive company that makes a very reasonable addition to our product range. We are looking forward to working with our new colleagues. We will jointly focus on further growing the business on the basis of our strong position and on tapping into new markets.”

Dr. Olaf Schermeier, the Management Board member who directs research and development at Fresenius Medical Care, added: “Treating heart and lung diseases with extracorporeal therapy systems is closely tied to dialysis both in technological terms and in the clinical process. By combining XENIOS AG’s innovative products and the experience of Fresenius Medical Care especially in the acute area, we can put these therapies into use on a broad-scale basis and achieve further progress that will benefit patients.”

The sale of XENIOS AG is now the second successful transaction for zfhn this year. In July, the specialized ventilation technology company AWS Group AG was sold to a strategic investor. Presently, zfhn has a stake in twelve companies. Some 70% of them are in the expansion phase, approx. 20% are in the seed phase and 10% are in the startup phase. The number of employees in all holding companies at the Heilbronn location has doubled in the past four years to approximately 400. Counting all employees in Germany and at international locations, the total number reaches almost 1000.

The transaction is now subject to approval by the cartel authorities and is expected to be completed by the end of 2016. The sale price of the transaction was not disclosed.

Advisors:
M&A: Jefferies International Limited
Legal: CMS Hasche Sigle Partnerschaft von Rechtsanwälten und Steuerberatern mbB

Since it was founded in 2005, zfhn Zukunftsfonds Heilbronn has been one of the largest venture capital funds in Germany. It assists primarily young, innovative technology firms that are established in the Heilbronn region or are ready to settle there in the short to medium term. Zukunftsfonds is privately financed and holds hundreds of millions of euros in owner’s equity. It supports companies with capital, know-how and contacts in the Heilbronn economic region. Its objective is the continued growth of Heilbronn as a successful technology site. This will also include the setup and expansion of clusters (medtech, biotech, cleantech) on a local level.
www.zf-hn.de

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Photo Credit – Xenois AG