Medical device maker Peters Surgical buys majority stake in Stericat Gutstrings for $12M

France-based medical devices manufacturer Peters Surgical SAS has acquired controlling equity stake in Gurgaon-based Stericat Gutstrings Pvt Ltd for Rs 75 crore (approximately $12 million), it is learnt.

How much stake the French firm has picked in the Indian company could not be ascertained immediately. 

Stercat is engaged in manufacturing and marketing absorbable and non-absorbable surgical sutures. The products are sold primarily to dealers in the export and domestic market. It was founded in 1983.

The acquisition is the first cross-border M&A transaction in the Indian medical devices space after the Indian government cleared 100 per cent FDI in the sector earlier this year.

Stericat had sought approval from the Foreign Investment Promotion Board (FIPB) for the sale of 77.5 per cent stake in the company to French firm Peters Surgical. The proposal involved acquisition of 22.5 per cent stake through a share-swap deal and the remaining for cash.

However, FIPB recently approved only the acquisition of shares by the foreign investor for cash, and rejected the acquisition of shares through the share-swap route.

Founded in 1926, Peters Surgical is the second-largest wound care company in France. It offers sutures, meshes and devices dedicated to aesthetic surgery, drainage/suction, catheters, accessories for surgical procedures, anti-bedsores, orthoses and urodynamic disposables.

Systematix Capital Services Pvt. Ltd. acted as the sole advisor to Stericat's promoters on the transaction.

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