Leading global dental scanner developer Medit with an estimated value of about 4 trillion won ($3.1 billion) is being put up for sale, grabbing attention from private and industrial capital despite the risk-aversion sentiment.
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 sell a full ownership 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.
Since 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 can fetch around 4 trillion won, bank sources said.
Unison Capital acquired Medit’s 51 percent stake with management rights for 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.
The deal is expected to draw heated interest from major global PEFs and domestic and foreign healthcare companies.
Kohlberg Kravis Roberts (KKR) and Carlyle Group, which went up against Unison Capital in 2019 for Medit could re-challenge. Global oral healthcare companies Straumann Group and Envista Holdings are also expected to go after Medit.
Medit is one of the few lucrative companies that have been put up for sale, drawing attention in the lackluster M&A market. The developer of 3D dental scanners and solutions was founded by MIT graduate Dr. Chang Min-ho in 2000.
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
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