Private equity firm plans expansion in Asia and Latin America.
Private equity firm EQT Partners’ sixth fund, EQT VI, has agreed to buy German medical supplies manufacturer BSN Medical from Montagu Private Equity for about $2.5 billion (€1.8 billion) with a strategy to expand into emerging markets in Asia and Latin America. The deal comes less than a month after EQT divested itself of the Danish molecular diagnostics company Dako to Agilent in a $2.2 billion deal.
“We view BSN as a highly attractive growth case with strong resilience across the business cycle. While continuing to strengthen the position in key markets and in key product segments, there is tremendous potential in entering new geographic markets, especially in Asia and Latin America. BSN’s global foot-print and large sales force provide an excellent platform for add-on acquisitions,” says Marcus Brennecke, a partner at EQT Partners in Germany and an investment advisor to EQT VI.
BSN, which is based in Hamburg, has production facilities in Germany, France, Colombia, Mexico, New Zealand, Pakistan, South Africa, the United States, and Venezuela. It is one of the world’s leading suppliers of wound care, compression therapy, and orthopedic products to hospitals, pharmacies, and other customers. The company reported annual sales of close to $850 million (€665 million) in 2011 and has approximately 4,000 employees.
BSN was founded in 2001 as a joint venture between Beiersdorf and Smith & Nephew, and was acquired by Montagu Private Equity in 2005 for about $1.25 billion. Montague has made several attempts to sell the company or launch an IPO, according to Bloomberg. The buyout by EQT is Germany’s biggest M&A deal so far this year. It also highlights a growing interest in medical devices and orthopedics, as the global population ages and comes to depend on devices to improve quality of life.
BSN’s portfolio includes both acute and advanced wound care products; its compression therapy business focuses on ready-to-wear and custom-made compression garments, covering phlebology and lymphology indications; and its orthopedics business offers a comprehensive range of products for fracture management, physiotherapy and orthopedic soft goods.
EQT is a leading private equity group in Northern Europe with close to $22.75 billion (€18 billion) in raised capital and multiple investment strategies. Since inception, it has invested more than $13.9 billion (€11 billion) in around 100 companies and exited close to 50.
By MARIE DAGHLIAN