LONDON (Reuters) – Montagu Private Equity has hired Morgan Stanley to look at strategic options for BSN Medical, a move which could lead to a sale of the business for up to 1.7 billion euros ($2.64 billion), a person familiar with the situation said on Thursday.
The private equity firm bought the Hamburg-based bandage maker from Beiersdorf AG (BEIG.DE: Quote, Profile, Research, Stock Buzz) and Smith & Nephew Plc (SN.L: Quote, Profile, Research, Stock Buzz) for 1.03 billion euros in 2005.
“They are doing a proper review of the business and that is not a euphemism for putting it up for sale,” the source said. “It may lead to a sale … it is not a sale process at the moment.”
BSN makes medical dressings, casts and bandages. It is a major asset for Montagu, which typically focuses on deals worth between 100 million and 1 billion euros.
Beiersdorf and Smith & Nephew decided to sell the business three years ago in order to concentrate on higher-margin areas.
Last year BSN generated revenue of 560 million euros and showed growth of more than 4.5 percent. (Reporting by Ben Hirschler; Editing by Greg Mahlich)