Montagu pays €1bn for BSN

The UK buyout group has reportedly seen off competition from three other European private equity firms to claim the German medical products business.

London-based mid-market investor Montagu Private Equity has agreed to acquire BSN Medical, a German maker of casts and bandages, for €1.03 billion ($1.27 billion).
 
The transaction, expected to complete in the first quarter of 2006, is the first investment from Montagu Private Equity’s third fund, Montagu III, which closed in July at €2.3 billion.
 
Montagu was bidding against rival private equity firms Apax Partners, Advent International and CVC Capital Partners at the final round.
 
Hamburg-based BSN Medical was established in April 2001 from the merger of the casting and bandaging, general wound care and phlebology business of German hygiene group Beiersdorf and US medical equipment manufacturer Smith & Nephew.
 
The company has manufacturing facilities in Germany, France, Ireland, Mexico, Pakistan, South Africa, the UK and the US and the group overall employs 3,400 staff. Forecast revenues for 2005 are €525 million.
 
Headquartered in London and with offices in Manchester, Paris, Düsseldorf and Stockholm, Montagu Private Equity spun out of global banking group HSBC in March 2003.
 
Montagu’s other acquisitions this year include paying £200 million in April for London-headquartered waste management company Cory Environmental; and the purchase for an undisclosed sum of LEO Animal Health, a Danish pharmaceutical firm specialising in dermatology, ophthalmology and otology.