AGIC acquires European medical supplier, targets China growth
AGIC Capital has acquired 100% of Slovenia-based medical equipment supplier Fotona as part of a plan to expand operations in Asia with an emphasis on China. The deal will facilitate an exit for US private equity firm The Gores Group.
Financial details were not disclosed. Gores acquired the company in 2014 from the Slovenian government in a deal worth EUR18 million ($19.3 million), according to a report at the time by Reuters, citing local media.
The acquisition represents AGIC’s first investment in the healthcare sector. It expects to drive Fotona's growth by facilitating regulatory clearance processes in China and allowing for an expansion of a distribution network that currently comprises some 60 countries. The GP said it will increase the company’s focus on sales and marketing.
‘‘Fotona has seen exceptional growth in Europe and the US, its largest market, and has a strong track record for delivering innovative product lines,” Sam Sun, AGIC’s managing director and head of Greater China, said in a statement. “China is now the fastest growing market for medical and aesthetic lasers and with our support, the business will be well positioned to become a leading brand across Asia.”
Founded in 1964, Fotona focuses on the supplying European and US markets with high-performance lasers used in medical, dental and aesthetic applications. Customer services include professional workshops, individual training sessions, hands-on demonstrations and access to participation in international clinical studies and scientific symposiums.
Cross-border medical hardware plays are popular in China since the local industry for manufacturing quality devices is considered underdeveloped. Recent private equity activity in this space includes a $4 million investment in a China expansion push by US-based Diamedica and C-Bridge Capital’s acquisition of US-owned, China-based surgical equipment supplier Anrei Medical Device. Last year, Vivo Capital closed a Sino-US venture capital fund focused largely medical devices at $100 million.
AGIC focuses on Europe-Asia cross-border investments across industries including medical equipment, smart manufacturing, advanced materials and environmental technologies. It launched its debut fund in March 2015 and reached a final close of $1 billion earlier this year with strong support from Asian LPs.
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