Sponsor Montagu sells Germany’s BSN to rival EQT for €1.8bn — report

Swedish private equity investor EQT Partners AB has emerged victorious in the competition for German woundcare products specialist BSN Medical GmbH, the Financial Times reported citing sources familiar with the matter.

EQT has trumped rival bids from French investment company Wendel SA (EPA:MF) and the CVC Capital Partners Ltd-BC Partners Ltd tandem with an offer of EUR1.82bn (USD2.28bn).

BSN has been the property of Montagu Private Equity LLP since 2005, when the UK buyout firm took over the Hamburg-based business through an investment of EUR1bn, the FT said.

The newspaper went on to add that the deal offered fresh proof of private equity interest in healthcare companies, whose area of operation makes them relatively immune to recessions.

BSN was established in 2001 as a joint venture between German personal care products manufacturer Beiersdorf AG (ETR:BEI) and UK medical devices maker Smith & Nephew Plc (LON:SN). The company produces bandages, casts, splints, adhesive tapes and woundcare compresses.

It has a workforce of over 4,000 and its 2011 revenues amounted to EUR665m. According to the FT article, investors have recently become increasingly interested in the woundcare segment because of improving technology and rising demand for wound treatment due to the growing number of diabetes patients.

Before putting BSN on the block, Montagu had been considering an initial public offering for the business in 2010. However, the market turmoil interfered with those plans. Two years earlier, Montagu had given thought to an outright sale, the FT said.