© Reuters. FILE PHOTO: The Boyu Capital logo is seen at the company’s Hong Kong office, December 11, 2013. REUTERS/Tyrone Siew
Written by Ken Wu and Yantoltra Ngoy
HONG KONG (Reuters) – Private equity firms Boyu Capital, Hillhouse Capital and BPEA EQT (NYSE:) are among the bidders vying for Hong Kong-based medical device maker Quasar, three people familiar with the matter said.
Longreach, an Asia-focused private equity firm, is targeting a valuation of $600 million or more for the entire company, said one of the three sources and a separate person familiar with the deal.
The bidding process, which is being run by Goldman Sachs (NYSE), has entered the second round, the first three sources said.
All sources declined to be identified because the deal talks are confidential.
Longreach, Quasar, Boyu and Hillhouse did not respond to a request for comment. BPEA EQT and Goldman declined to comment.
Bidders are currently doing due diligence on the company, according to two sources, one of whom added that final bids are due by the end of June.
The fourth source and two separate people familiar with the matter said private equity firm General Atlantic and a number of strategic buyers are also in the fray. General Atlantic declined to comment.
The sale comes at a time when medical services companies are gaining traction, as investors bet on the health care sector’s ability to weather the tough global economic environment.
Founded in 1988 in Israel, Quasar is a global development and manufacturing organization (CDMO) for advanced medical devices that includes Johnson & Johnson (NYSE:) and Medtronic (NYSE:PLC) as customers, according to the company’s website.
The website showed that 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 EBITDA was about $30 million in 2022, said one of the sources and a seventh source familiar with the deal.