Ottobock is planning an IPO worth billions in spring 2022

Berlin Hans Georg Näder doesn’t have to sell, but he wants to. With his two daughters Julia and Georgia, he is the largest shareholder in Ottobock – a company that has made it to the top of the world in the manufacture of prostheses. In order to be able to keep the company from the tranquil Duderstadt there permanently, the Näder family wants to take Ottobock to the stock exchange. In the spring of next year, 103 years after it was founded, a share is to be traded in Frankfurt for the first time.

This is a big step for the family, as generation three and four are giving up at least some of the control over their inheritance. Näder is not dependent on money. He does some commitments of an economic and social nature, which he feeds with the proceeds from Ottobock. But he doesn’t have to sell any shares to do so. The US magazine “Forbes” estimates his fortune at around two billion dollars.

There is another reason for going on the capital market. The company from Lower Saxony could continue to operate in the usual manner as in previous years and exceed the billion-euro threshold in terms of sales. But the market for prostheses is facing serious changes.

Therefore, Näder says: “We can imagine going public in order to open up new fields.” He thinks of system solutions that can make work on construction, on the assembly line or in logistics easier. But also of so-called neuro-orthoses, with which older people can move better. “This era will come,” Näder told Handelsblatt. The new technologies are very expensive.

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Näder Mitte proved last week that he is now serious: he invited the most important decision-makers to the Ottobock branch in Berlin-Mitte, which is close to Potsdamer Platz. Representatives from the banks were there, as were the most important consultants as well as Marcus Brennecke from co-shareholder EQT and of course Philipp Schulte-Noelle, CEO of Ottobock.

Clear distribution of tasks between Näder and Schulte-Noelle

At first glance, Schulte-Noelle looks like an alternative to his boss. The newspaper recently published pictures of Näder’s 60th birthday, which he celebrated with almost 200 guests on the Greek peninsula of Pelion. In the midst of a dancing crowd sits the jubilee with his gray head and distinctive black glasses.

Compared to Näder’s pronounced individuality, Schulte-Noelle looks like a youngster from a business school with his perfectly tailored suits. The 44-year-old describes himself as a “performance manager”. He is ambitious, has an excellent network thanks to his father and ex-Allianz boss Henning Schulte-Noelle and is loyal to the major shareholder. And also important for Näder: “He has very good manners.”

The two men have a clear division of responsibilities. “Näder is the radar for new technologies, I then implement them,” says Schulte-Noelle in an interview with Handelsblatt. He wants to strategically reposition Ottobock. “We are moving closer to the user, which is made easier by digital networking.” If there is a problem with the prosthesis socket or if the end of use is approaching, the company can contact those affected directly. “On the way we can help more quickly in an emergency,” says the CEO. Up to now it has often been too long a period of time before people with amputations received information about support from prostheses.

High-tech prosthesis

An orthopedic technician stands next to a woman with a lower leg prosthesis of the “Genium” type from Ottobock.

(Photo: picture alliance / Andreas Arnol)

Ottobock grew up with the manufacture of prostheses with which war invalids could walk again. In the meantime, the company also develops and produces products with which construction workers or logisticians, for example, can handle higher loads. So far, this market has been difficult for around 100 million euros – in the coming years, however, it could multiply to 700 million euros, according to experts.

But other areas are also growing: Industry experts expect the market for so-called neuro-orthoses, with which stroke patients can regain their mobility, to grow to around half a billion euros. 600,000 people have a stroke every year in Germany alone.

Those are the sober numbers. But Näder also knows the fate of people who depend on his products for the rest of their lives. He seeks exchange very regularly, and he is friends with some of them, as he says. He may be a billionaire and a yacht owner with his own shipyard, but it doesn’t keep him in his bladder. He breaks out. This may also be related to its origin.

After the Second World War, the family had to start over in West Germany because the headquarters in Königsee, Thuringia, was confiscated by the Soviets. When his father Max Näder handed over the management of the company to him in 1990 at a company party, the now 60-year-old stood between sausage stands and beer banks. A big band from the Bundeswehr was playing in the background, the entrepreneur recalls. When he received the Zeiss Ikon master key from his father, 1000 people were working for Ottobock. The turnover was around 80 million euros.

Great growth potential and a strong brand

Today, 9,000 employees generate sales of one billion euros. This should not stop there. The sales markets are growing and, with Schulte-Noelle at the helm, the company is planning acquisitions. The Ottobock boss emphasizes that there are a number of possible goals. This requires the money from the IPO.

In financial circles, Ottobock is seen as one of the biggest deals for the coming year. The valuations vary between five and seven billion euros. “The decisive factor is the growth potential – and the strong brand,” says a banker. Many potential investors who want to remain involved in the long term have already contacted us in advance. After all, Ottobock is a family company with excellent management.

Four years ago, Näder first voiced the idea of ​​an IPO, but then initially brought the Swedish financial investor EQT on board. Many managers from the financial scene had hoped for the contract – KKR, Blackstone and others sometimes offered more money than the Swedes. The decisive factor was Marcus Brennecke, partner at EQT.

Brennecke understands what makes a family business tick better than others. The Swedish billionaire clan Wallenberg, who know what makes families tick, is also behind EQT. Brennecke had called on Näder several times to participate. “We had Ottobock on our radar for a long time before we could take on a stake,” he says.

EQT is actively involved in the company’s development. The aim is to take Ottobock to the next level of development. One is on the right track. “Since joining, the management has been strengthened and the company has been strengthened through acquisitions in various areas,” says Brennecke.

More: Ottobock signs Deutsche Bank, Goldman Sachs and BNP Paribas for billion-euro IPO.

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