HONG KONG Reuters - Private equity firms Boyu Capital, Hillhouse Capital and BPEA EQT are among bidders vying for Longreach Group's Hong Kong-based medical device maker Quasar, three people with knowledge of the matter said.
Longreach, an Asia-focused private equity firm, isaiming for a valuation of up to $600 million for the entire company, according to one of the three sources with knowledge of the transaction.
The bidding process, operated by Goldman Sachs, has entered the second round, the first three sources said.
All the sources declined to be identified as the deal talks are confidential.
Longreach, Quasar, Boyu and Hillhouse did not respond to a request for comment. BPEA's EQT and Goldman declined to comment.
Bidders are currently doing due diligence on the company, according to two sources, one of whom said final bids are due by end of June.
Private equity firm General Atlantic and a number of strategic buyers are also in the fray, the fourth source said. General Atlantic declined to comment.
The sale process is a time where medical service firms are gaining popularity, as investors bet on the ability of the healthcare sector to survive the challenging global economic environment.
Quasar, founded in Israel in 1988, is a global contract development and manufacturing company that includes Johnson Johnson and Medtronic PLC as clients, according to the company's website.
It has two manufacturing plants in China and one in Thailand, the website said.
In 2019, Longreach acquired the controlling stake in the company for an undisclosed amount.
In 2022, Quasar's earnings were about $30 million before interest, taxes, depreciation and amortization, said one source, a seventh source with knowledge of the transaction.