Leading global dental scanner developer Medit with an estimated value of about 4 trillion won ($3.1 billion) is put up for sale, drawing attention despite a coldown in overall M&A activities thanks to its solid earnings growth.
According to the IB industry on Monday, Unison Capital, a private equity firm and the largest shareholder of Medit, has sent out teaser letters to prospective buyers to offer a 100 percent stake in Medit that includes the PEF’s own stake with management right plus the rest from the company founder and employees. Citigroup Global Markets Securities is leading the sale.
Considering that Medit’s full stake was valued at 3.2 trillion won during its recent refinancing, five times greater than what it was worth three years ago when Unison Capital acquired it, the sale price is estimated at around 4 trillion won.
Unison Capital acquired Medit’s 51 percent stake with management right at 320 billion won in October 2019. Since its takeover, Medit has grown to one of the world’s top 2 dental oral scanner companies in terms of market share.
Medit’s sales also more than doubled to 190.6 billion won in 2021 from 2019, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) tripled to 104.9 billion won over the same period. This year’s earnings are expected to continue to grow, with sales estimated to reach around 300 billion won and EBITDA 200 billion won.
Thanks to such stellar performance in the past three years and its bright growth potential, competition for the full stake in Medit is expected to heat up between major global PEFs and domestic and foreign healthcare companies.
Kohlberg Kravis Roberts (KKR) and Carlyle Group that went up against Unison Capital in 2019 for Medit are floated as potential candidates again, while global oral healthcare companies Straumann Group and Envista Holdings are also expected to go after Medit.
Medit is one of the few lucrative companies put up for sale, drawing attention in the M&A market grappling with thinning deals. The developer of 3D dental scanners and solutions was founded by MIT graduate Dr. Chang Min-ho in 2000.
And many oral scanner companies are currently considered attractive M&A target thanks to their great growth potential, according to IB industry sources. Envista recently entered into a definitive agreement to acquire Carestream Dental for $600 million in April.
By Kang Doo-soon, Kang Woo-seok, and Susan Lee
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]