Duke Street has led a group of co-investors to acquire German medical device business Medi-Globe Corporation.
The financial terms of the transaction were not disclosed but it is understood the company has an enterprise value of €140 million.
The Duke Street co-investment group included Deutsche Bank, through DB Private Equity Secondary Opportunities Fund III, which closed on its €1.65 billion hard-cap in late 2014, and other funds. Other investors in the group were Atnahs Capital; listed private equity investor Bredorode; and Harwood Capital.
Duke Street took the largest slice of the deal “by far,” said a source with knowledge of the transaction.
Medi-Globe develops, manufactures and distributes disposable gastroenterology and urology devices, and distributes hospital supplies. Its key markets are Germany and France, but it also operates elsewhere in Europe, Brazil, China and Japan.
Germany’s GUB Venture Capital is a cornerstone investor in the company that generated EBITDA of around €16.6 million in 2015, and reported revenues of about €120 million.
“Since 2013 the main shareholders have screened the market to find the best fitting buyer for Medi-Globe,” said GUB managing director Gerald Glasauer in a statement. “The shareholders received a considerable number of offers from interested parties and came to the conclusion that Duke Street and its consortium would be the best fit.”
The medtech market is worth about $400 billion globally and is growing at about 5 percent a year, the statement said, adding that the minimally invasive gastroenterology and urological segments are set to outpace that growth as they reduce hospital time, and improve productivity and patient outcomes.
“Medi-Globe is a local hero in the German medtech market because of its consistently strong product quality and innovation, high service levels and excellent clinical relationships,” Duke Street managing partner Charlie Troup said in the statement.
The Medi-Globe acquisition is Duke Street’s fifth standalone investment since it switched to investing on a deal-by-deal basis in 2012 following the cancellation of fundraising for its seventh flagship vehicle.
Duke Street’s other deal-by-deal investments include Voyage Care, a UK residential care provider; Baywater Healthcare, a sleep and respiratory services provider; and UK funeral services provider Laurel Funerals. The firm acquired Laurel as part of a consortium in its first deal-by-deal transaction and exited the company in June realising £75 million ($105 million; €97 million).
In August the firm, with Searchlight Capital Partners, acquired Fork Rent and One Call Hire, which they plan to combine to make one of the UK’s largest construction equipment rental businesses, according to a release.
In healthcare, the firm’s previous investments include French diagnostic company Biomnis acquired in 2008; UK dentistry group Oasis, which it has partially exited; UK mental healthcare services company Affinity Healthcare, which it acquired in 2004 and sold in 2010; and French private hospital company Groupe Proclif, in which it invested in 2005 and exited in 2010.
The last fund the firm raised was Duke Street Capital VI, a 2006 vehicle that closed at €963 million, according to PEI Research & Analytics.