HONG KONG (Reuters) – Private equity firms Bo You Capital, Hillhouse Capital and BPEA EQT are among the bidders vying to buy the Hong Kong-based medical device maker Quasar, which is owned by Longreach Group, said the sources said. Three people familiar with the matter said they were involved.
Longreach, an Asia-focused private equity firm, is targeting a valuation of up to $600 million or more across the company, said one of three sources familiar with the deal and another person familiar with the deal. official said.
The bidding process, run by Goldman Sachs, has entered its second round, according to the first three sources.
None of the sources declined to comment because the deal negotiations are confidential.
Longreach, Quasar, Boyu and Hillhouse did not respond to requests for comment. BPEA EQT and Goldman declined to comment.
The bidders are now conducting due diligence on the company, one of whom added that a final bid is expected by the end of June, two sources said.
Private equity firm General Atlantic and a number of strategic buyers are also in the fray, said a fourth person familiar with the matter and two others. General Atlantic Airlines declined to comment.
The sale process comes at a time of growing support for health services companies as investors bet on the health sector’s ability to weather a tough global economic environment.
Founded in Israel in 1988, Quasar is a global contract development and manufacturing organization (CDMO) for advanced medical devices owned by Johnson & Johnson (JNJ.N) and Medtronic (MDT.N), according to its website. ) are listed as customers.
The company has two manufacturing facilities in China and one in Thailand, according to its website.
Longreach acquired control of the company in 2019 for an undisclosed amount.
Quasar’s earnings, excluding interest, taxes and depreciation, were about $30 million in 2022, according to one of the sources and a seventh person familiar with the transaction.
Reported by Kane Wu in Hong Kong and Yantultra Ngui in Singapore. Additional reporting by her Roxanne Liu in Beijing.Editing: Smeet Chatterjee and Christopher Cushing
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