Swedish Buyout Firm Plans To Sell BSN For $2.2B
EQT, a Swedish private equity group, plans to sell off BSN, which specializes in wound care, vascular care, and orthopedic products, sources told Reuters. EQT is reportedly working with JP Morgan to facilitate the sale, which could be worth over $2.2 billion.
EQT first acquired BSN in a $2.3 billion deal, beating out bids from Kimberly Clark and BC Partners, Reuters reported in 2012. At the time, BSN sold products under a range of brand names, including Gypsona, Actimove, and Cutimed. The firm’s plan was to accelerate growth of BSN’s core businesses by expanding into emerging markets in South America and Asia, as well as inking additional acquisition deals.
BSN broadened its portfolio of wound care product offerings with the acquisition of Sorbion in 2014. In 2015, BSN acquired JoViPak and Wright Therapy Products, which expanded BSN’s suite of products that address chronic venous insufficiency and lymphedema care. The company’s “buy and build” strategy set up operations in France, Brazil, South Africa, and New Zealand, reported Reuters.
BSN reported strong organic growth in 2015, with revenues increasing by 12.9 percent to $970 million. BSN — which began as a joint venture between Germany-based Beiersdorf and Smith & Nephew in 2001 — now employs 6,100 employees in 36 countries. CEO Guido Oelkers commented that the company’s approach to integrated therapy solutions, innovation, and specialty businesses spurred growth in 2015.
With JP Morgan, EQT is pursuing a dual-track process, a method that runs an M&A sale track and initial public offering (IPO) side-by-side, and allows the seller to make a decision on preferred exit strategy late in the process. Sources close to the deal told Reuters that several private U.S. equity funds had expressed interest and the business could be sold or listed later this year.
If EQT can secure a buyer for BSN, the deal will be the second major exit for the company this year. Last month, EQT sold prosthetic voice implant maker Atos Medical in a $958 million deal with PAI Partners.
Buyout firms are eager to invest in healthcare because of the industry’s resilience and stability despite difficult markets, said Reuters. Both EQT and JP Morgan declined to comment on a potential deal to sell off BSN Medical.