Medica — M&A Activity 2022

Sep 1, 2022

MEDICA S.p.A. Via Degli Artigiani, 7 41036 MEDOLLA MODENA - ITALY

Tel. 0535 51159 Fax 0535 52605 e-mail: info@medica.it home page: www.medica.it

International: Tel. +39 0535 51159 Fax +39 0535 52605

MEDICA ACQUIRES 100% OF SLOM SRL, SPECIALIZED IN THE PRECISION MECHANICAL MANUFACTURING

Medolla (MO), 1 September 2022 – Medica S.p.A., an integrated Italian biomedical and MedTech group with a strong international footprint, announces the acquisition, through its subsidiary Tecnoideal Srl, of 100% of the share capital of Slom Srl, specialized in precision machining.

Luciano Fecondini, Founder and President of Medica, commented: We are pleased to announce that Slom Srl is joining the Medica Group by providing its precision mechanical skills, especially for the Automation division. I am convinced that Slom's entry will generate synergies both in terms of reducing machining costs and in terms of improving the production efficiency of the Automation division.

Transaction rationale

Slom Srl, based in Medolla (MO), has established itself over time in the field of precision machining, providing more services that meet the needs of companies in the biomedical sector.

The acquisition of Slom Srl contributes to the vertical integration path of the Medica Group. In this way it will be able to avail of qualified services on the territory in favor of both a reduction in the production costs of the machines and a better efficiency of the production department. It is also our intention to proceed shortly with the incorporation of Slom Srl into Tecnoideal Srl.

Slom Srl's revenues at 31 December 2021 amounted to approximately 1.3 million euros and EBITDA to approximately 0.1 million euros, while equity at 31 December 2021 amounted to approximately 0.5 million euros.

Transaction overview

Tecnoideal Srl acquired 100% of the quotes of Slom Srl from Neri Riccardo for a consideration of € 0.6 million, equal to a multiple EV / Ebitda 2021 of 8x, subject to adjustment based on the net financial debt at the closing date.

The seller has provided guarantees in favor of Tecnoideal Srl as per practice for transactions of this nature, size and complexity.

Luciano Fecondini will take the leadership of the Company as a sole director.

Medica financed the acquisition partly using own cash and partly through a bank loan.

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MEDICA S.p.A. Via Degli Artigiani, 7 41036 MEDOLLA MODENA - ITALY

Tel. 0535 51159 Fax 0535 52605 e-mail: info@medica.it home page: www.medica.it

Medica Profile

Medica Group is operating since 1985 in the biomedical district of Mirandola (Italy). Development of innovative products for blood purification has always been company's core business. Thanks to the activity of two extremely dynamic R&D groups (medical equipment, membranes and disposable), the Group competes successfully in several markets, namely:

• Medical (dialysis, CRRT, ECCO2, Apheresis, DFPP, CHF, HIPEC, pre-transplant organ perfusion, bioregenerative medicine, gastroenterology, urodynamics, oxygen humidification).
• Microbiological purification of water
• Industrial automation for the biomedical sector.

R&D focus has been integrated over the years with a highly automated production systems in five different facilities, four in Italy and one in Tunisia, and two commercial entities (in US and in China).

The key success factors of the Group are:

• extrusion of hollow fiber membranes for hemofiltration, plasmapheresis, cascade filtration, oxygen humidification, ultrafiltration and microfiltration of water
• vertical integration, proved by the ability to manage not only the design and development of medical disposables and equipment, and the development of the automation technologies required for their production as well.
• International recognition with significant share of export, with sales in over 60 countries.

The Medica group closed its consolidated financial statements for 2021 with revenues of 43.8 million euros (44.1 million euros in 2020), EBITDA of 9.9 million euros (9.5 million euros in 2020), EBIT of € 5.8 million (€ 5.6 million in 2020) and net profit of € 5.0 million (€ 3.8 million in 2020).

For information: Investor Relations Medica Giovanni Plasmati (+39) 0535 51159 giovanni.plasmati@medica.it

Euronext Growth Advisor CFO SIM S.p.A. (+39) 02 303431 ecm@cfosim.com