Embla Medical hf: Embla Medical closes the majority share investment in Streifeneder ortho.production GmbH

Rhea-AI Summary

Embla Medical (NASDAQ Copenhagen: EMBLA) has successfully completed its majority share acquisition of Streifeneder ortho.production GmbH, now owning 51% of the company. Streifeneder, an international developer of orthopaedic mobility solutions with approximately 100 employees, reported sales of EUR 25 million in 2024, with 70% derived from prosthetics and orthopaedic materials.

To facilitate the transaction, Embla Medical's Board has issued 2,805,135 new shares at DKK 33.26 per share, increasing the company's nominal share capital by 0.7% to ISK 430,441,257. The total value of the share capital increase amounts to DKK 93 million (EUR 12.5 million). The sellers have agreed to a two-year lock-up period for the new shares.

The transaction is not expected to materially impact Embla Medical's 2025 financial guidance.

Positive

• Strategic acquisition of 51% stake in Streifeneder expands Embla's orthopaedic mobility solutions portfolio
• Streifeneder generates significant revenue of EUR 25 million (2024) with 70% from prosthetics and orthopaedic materials
• Sellers commit to long-term alignment with a two-year lock-up period on newly issued shares
• Minimal share dilution of only 0.7% from the transaction

Negative

• Share capital increase of DKK 93 million through new share issuance
• No immediate material positive impact expected on 2025 financial guidance

Insights

Financial Analyst

Embla Medical's 51% acquisition of Streifeneder strengthens its orthopedic portfolio but has minimal immediate financial impact.

Embla Medical has officially completed its 51% majority stake acquisition in Streifeneder ortho.production, a strategic move that expands its orthopedic mobility solutions portfolio. Streifeneder brings approximately EUR 25 million (USD 29 million) in annual sales, with ~70% derived from prosthetics and orthopedic materials, complementing Embla's existing operations.

The transaction structure reveals thoughtful financial engineering. Embla issued 2,805,135 new shares at DKK 33.26 per share, diluting existing shareholders by only 0.7% while raising DKK 93 million (EUR 12.5 million). The sellers have agreed to a two-year lock-up period, demonstrating their confidence in the combined entity's future performance and aligning their interests with existing shareholders.

While the company states the transaction won't materially impact 2025 financial guidance, this acquisition has strategic significance. It gives Embla immediate access to Streifeneder's specialized product lines and approximately 100 employees with expertise in prosthetic components, orthotic solutions, and orthopedic materials. This controlled expansion allows Embla to enhance its competitive position in the orthopedic mobility market without significantly altering its near-term financial trajectory.

Announcement no. 39/2025

29 August 2025 

Reference is made to announcement no. 31/2025 published on 17 July 2025 (Embla Medical signs agreement to invest in a majority share in Streifeneder ortho.production GmbH).

REYKJAVIK, Iceland and COPENHAGEN, Denmark, Aug. 29, 2025 /PRNewswire/ -- Embla Medical (NASDAQ Copenhagen: EMBLA), a leading global provider of innovative mobility solutions, today announced that the majority share investment in Streifeneder ortho.production has been completed following regulatory approvals. Therefore, the transaction is officially closed and Embla Medical now owns 51% of shares in Streifeneder ortho.production.

Streifeneder ortho.production is an international developer and supplier of orthopaedic mobility solutions, employing around 100 people. In addition to its offerings of prosthetic and orthotic components, Streifeneder ortho.production also supplies orthopaedic materials and equipment to the O&P industry. In 2024, Streifeneder ortho.production realized sales of EUR 25 million (approximately USD 29m) with ~70% of sales related to prosthetics and orthopaedic materials.

In connection with the investment, the Board of Directors of Embla Medical has resolved to utilize the authorization in Article 5, paragraph 1, of the Articles of Association to issue 2,805,135 new shares in Embla Medical, raising the total share capital in nominal value by 0.7% from ISK 427,636,122 to ISK 430,441,257. The price of each new share is DKK 33.26, and the total value of the share capital increase is thus DKK 93 million (EUR 12.5 million).

The sellers of Streifeneder ortho.production will subscribe for all the new shares. The sellers have also agreed to a two-year lock-up period from closing for all the new shares.

The transaction is not expected to have any material impact on the financial guidance for 2025.

Further information Embla Medical

Klaus Sindahl
Head of Investor Relations
M: +45 5363 0134
E: ksindhal@emblamedical.com 

Edda Heidrun Geirsdottir
VP of Corporate Communication
M: +354 664 1055
E: egeirsdottir@emblamedical.com 

Further information Streifeneder
Sabine Knobloch
Head of Legal Department
M: +49 172 8165265
E: S.Knobloch@streifeneder.de 

Embla Medical press releases by e-mail

If you wish to receive Embla Medical press releases by e-mail, please register at http://www.emblamedical.com/investors

About Embla Medical

Embla Medical (Nasdaq Copenhagen: EMBLA) was founded in Reykjavik in 1971 with the mission to improve people's mobility. Embla Medical is home to several brands renowned for positively impacting people's health and well-being. They include Össur, a leading global provider of prosthetics and bracing and supports solutions; FIOR & GENTZ, an innovative developer of neuro orthotics; and College Park Industries, creators of custom-built prosthetic solutions. Embla Medical also provides patients with world-class care through a global network of Orthotic and Prosthetic (O&P) facilities. Embla Medical is committed to sustainable business practices and is signatory to the UN Global Compact, UN Women's Empowerment Principles, and contributes to the UN Sustainable Development Goals. The company's climate targets have been verified by the Science Based Targets initiative. Embla Medical operates globally and has more than 4,000 employees. www.emblamedical.com

Embla Medical was formerly listed as Össur (OSSR) on Nasdaq Copenhagen until 8 April 2024.

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20250829 Embla Medical closes the majoriy share investment in Steifeneder ortho.production GmbH FINAL

 

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SOURCE Embla Medical hf.

FAQ

What percentage stake did Embla Medical acquire in Streifeneder ortho.production?

Embla Medical acquired a 51% majority stake in Streifeneder ortho.production following regulatory approvals.

How much revenue did Streifeneder ortho.production generate in 2024?

Streifeneder ortho.production generated EUR 25 million (approximately USD 29m) in sales during 2024, with about 70% coming from prosthetics and orthopaedic materials.

How many new shares did Embla Medical issue for the Streifeneder acquisition?

Embla Medical issued 2,805,135 new shares at DKK 33.26 per share, with a total value of DKK 93 million (EUR 12.5 million).

What is the lock-up period for the newly issued Embla Medical shares?

The sellers of Streifeneder ortho.production agreed to a two-year lock-up period for all the newly issued shares.

How will the Streifeneder acquisition affect Embla Medical's 2025 financial guidance?

The transaction is not expected to have any material impact on Embla Medical's financial guidance for 2025.