Temasek Holdings is exploring selling Advanced MedTech, multiple sources said, after the medical devices firm, fully-owned by the Singaporean state investor, received interest from suitors including buyout funds.
Two investment banks have been tapped to launch a sale process for Singapore-headquartered MedTech, which could be valued at roughly $1 billion, two of the sources said.
All the sources declined to be named as news of the sale process has not been made public.
A Temasek spokesperson declined comment, while there was no immediate comment from an external spokesperson for Advanced MedTech.
Advanced MedTech, which earns the majority of its business from the United States, is one of the few companies that is fully-owned by Temasek, which ranks among the world’s biggest investors.
“It’s not often that you see a company fully owned by Temasek coming to the market,” said one source familiar with the deal process, adding that Advanced MedTech was likely to be viewed as a turnaround story.
U.S. healthcare companies have fared relatively better in the weak equities market this year as investors view these firms as defensive plays in a challenging economic environment.
The sources expect private equity firms, healthcare-focused funds and strategic investors to put in bids for Advanced MedTech, adding that the deal value is subject to negotiations between the parties.
Advanced Medtech spun out in 2019 from Accuron Technologies Ltd, a Temasek company, as the medical device firm looked to speed up growth and focus on its mainstay urology business.
Advanced MedTech, which also makes investments in medical technology firms, said it reported $280 million in revenue in the year to March 2022, logging a compound annual growth rate of 15% over the last five years.
In August, Advanced MedTech named a new CFO, Greg Miller, whom it said would be based in the United States. While announcing the hire, Advanced Medtech’s Group CEO Abel Ang had said Miller’s U.S. and global financial expertise would be “transformative” for it as it accelerates into its next phase of growth.
The company said Miller had a strong track record in executing on strategic mergers and acquisitions and fundraising.
Advanced MedTech has 11 regional offices spread across North America, Europe, and Asia Pacific. With a global sales team and distributor network in South America and Africa, it has millions of patients and physicians in 100 countries, the company said on its website.