Corin takes giant steps to an Italian takeover

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CIRENCESTER-BASED orthopaedics manufacturer Corin is set for a £30.5million takeover.

Italian group 2IL Orthopaedics Ltd has made an offer to acquire the business.

Stefano Alfonsi is in line to be appointed chief executive with current Corin executive chief Peter Huntley leaving the business after assisting with the handover.

Chairman Linda Wilding and non-executive director David Young will also resign from the board once the offer is declared unconditional.

Commenting on the offer yesterday, Linda Wilding said: “Under Peter Huntley’s leadership, Corin has significantly invested in and successfully developed a range of new and revised hip and knee products.

“It now has a comprehensive product portfolio showing good organic growth which has substantially reduced the Group’s historical reliance on its metal on metal products.

“The Group is now successfully competing on the world stage but in an industry dominated by much larger players, lacks the necessary scale to leverage its investments and operational infrastructure.

“Today’s offer enables shareholders to realise a significant cash premium to Corin’s recent share price and provides an attractive opportunity for our customers and employees to benefit from the further investments planned in the Group.”

2IL is a newly-incorporated business formed by 2IL shareholders for the purpose of the offer.

Marco Fumagalli, director of 2IL said: “Peter began the task of turning Corin into an expanding medical devices business with a platform of fantastic modern products.

“We are delighted to be able to offer a growing future to the business and look forward to completing our offer and working with all at Corin to deliver our goals.”

Corin employs 100 at its site in Love Lane Industrial Estate, Cirencester and exports now make up 83 per cent of the business with sales operatives in six countries

All of its employees will remain with the business and there are no plans to change the principal locations of the business, 2IL said.

Corin’s hip product sales rose by 38 per cent to £15.9 million for the first six months of this year (2011 £11.5 million), driven by the company’s new cementless hip systems.

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