Private equity firms Boyu Capital, Hillhouse Capital and BPEA EQT are among bidders vying for Longreach Group’s Hong Kong-based medical device maker Quasar. Longreach is targeting a valuation of as much as $600 million or more for the entire company.
The bidding process, which is being run by Goldman Sachs, has entered the second round. Private equity firm General Atlantic and a number of strategic buyers are also in the fray.
Established in 1988 in Israel, Quasar is a global contract development and manufacturing organization (CDMO) of advanced medical devices and counts Johnson & Johnson and Medtronic PLC as clients. It has two manufacturing facilities in China and one in Thailand.
Longreach acquired a controlling stake in the company in 2019 for an undisclosed amount. Quasar’s earnings before interest, taxes, depreciation and amortization was about $30 million in 2022.
The sale process comes at a time where medical services companies are gaining favour, as investors bet on the healthcare sector’s ability to weather the challenging global economic environment. Final bids are due by end of June.