BSN Medical Said to Target KKR, Blackstone as EQT Seeks an Exit

  • Health-care firm could fetch about $3.3 billion in a sale
  • Firm said to still prefer IPO as memos go to potential bidders

EQT Partners AB is sending information about its German health-care firm BSN Medical GmbH to potential bidders as it explores an exit of the business, which could be valued at about 3 billion euros ($3.3 billion), people familiar with the situation said.

The company is targeting private equity firms including KKR & Co., CVC Capital Partners, Blackstone Group LP and Cinven Ltd., the people said, asking not to be named because the process is private. Other companies in the medical industry may also consider bids, the people said.

EQT is also still weighing an initial public offering for the unit, which remains the preferred option, one of the people said. Stockholm-based EQT is working with advisers at JPMorgan Chase & Co. on the exit, the people said.

A 3 billion euro valuation would be about 15 times BSN’s earnings before interest, taxes, depreciation and amortization last year. BSN makes products to care for wounds and sprains and other illnesses that require compression therapy. The company’s peers include CR Bard Inc., Denmark’s Coloplast A/S, Iceland’s Ossur hf and U.K.-based Smith & Nephew Plc.

Representatives for EQT, Blackstone, CVC, Cinven and JPMorgan declined to comment. A representative for KKR didn’t immediately respond to requests for comment. EQT invested in BSN in 2012 and owns a 69 percent stake, according to its website.