In a move that could potentially make it under the wire to rank among the biggest medtech M&A deals of 2022, Temasek Holdings is said to be considering a sale of its Advanced MedTech subsidiary.
A handful of unnamed sources told Reuters about the considerations on Monday, reporting that potential buyers are already showing interest in the sale. Those throwing their hats in the ring could include buyout funds, private equity firms, healthcare-focused funds and strategic investors, the sources said.
Advanced MedTech had no comment on the reports, and Temasek didn’t immediately respond to Fierce Medtech’s request for comment.
Singapore-based Advanced MedTech has developed a range of medical devices and equipment focused on urology, including surgical workstations, kidney stone-smashing lithotripsy lasers, disposable ureteroscopes, catheters and more.
According to a late August press release (PDF) that announced the hiring of a new chief financial officer, Advanced MedTech raked in $280 million in its 2022 fiscal year, which ended March 31. For the last five years, the company reported, it has expanded at a compounded annual growth rate of 15%, and more than half of its business is now based in the U.S., CEO Abel Ang said in the announcement.
Two of Reuters’ sources suggested that the devicemaker could be valued at around $1 billion in its potential sale.
Advanced MedTech got its start in the early 1980s, when it was founded in Germany as Dornier MedTech. Temasek—Singapore’s national investment and holding company—purchased Dornier in 1996, then went on to position all of its urology technology under the Accuron MedTech Group umbrella.
In 2019, Accuron MedTech spun out from its own Temasek-owned holding company, Accuron Technologies, and rebranded as Advanced MedTech. It remains fully owned by Temasek, with Dornier MedTech as a wholly owned subsidiary.
And while the buyout discussions are still unconfirmed, Advanced MedTech may have hinted at them in the August announcement. In it, while welcoming U.S.-based Greg Miller as its incoming CFO, the company specifically highlighted Miller’s “strong track record in executing on strategic mergers and acquisitions and fundraising.”
Advanced MedTech has also ramped up its own M&A as of late. In September, it acquired (PDF) a majority stake in Shenzhen, China-based Wikkon, with plans to snap up all remaining shares by the end of the year. The buyer described Wikkon as China’s market leader in both urology and shockwave therapy devices, giving Advanced MedTech a simplified expansion route through Wikkon’s existing network of healthcare partners.