* EQT agrees to buy BSN from Montagu Private Equity
* Bandages maker BSN had 2011 revenues of 665 mln eur
* BSN drew interest from Kimberly Clark, rival p/e
LONDON/STOCKHOLM, June 11 Swedish private equity
group EQT agreed to buy German bandage and plaster cast maker
BSN medical for about 1.8 billion euros ($2.2 billion), sealing
one of the largest buyout deals in Europe this year.
BSN medical, which had revenue of 665 million euros ($829.1
million) in 2011, had drawn interest from personal care group
Kimberly Clark and buyout firms including BC Partners
and CVC, who made a joint bid, in an auction
run by Goldman Sachs and HSBC.
The deal announced on Monday to buy BSN medical from rival
buyout group Montagu Private Equity is subject to statutory
regulatory clearances, the private equity firms said on Monday.
The acquisition is another example in a wave of so-called
secondary buyouts, in which one private equity house buys a
business from a rival. Despite tight financing conditions due to
the euro zone crisis, banks remain willing to lend for buyouts
of businesses they know well and have seen performing under
previous private equity owners.
CVC agreed to buy Swedish tools group Ahlsell earlier this
year in a similarly sized deal, while Silver Lake Partners and
Partners Group recently picked up tax-free shopping business
Global Blue from Equistone in a 1 billion euro deal.
To back the buyout, EQT mandated Deutsche Bank, Goldman
Sachs, JP Morgan and Morgan Stanley to arrange around 1.13
billion euros of loans, representing roughly 6 times BSN's 170
million euro EBITDA, according to a source close to the
The loan includes 392 million euros of mezzanine debt
provided by Highbridge Capital, JP Morgan, KKR, MezzVest and
Partners Group, the source said.
BSN medical markets its wound and fracture care products
internationally under a range of brand names including Gypsona,
Actimove and Cutimed.
EQT, a third owned by holding company Investor AB
, said it planned to accelerate BSN's growth by
investing in its core business and in geographic expansion into
new markets such as Asia and Latin America, and by making
further add-on acquisitions.