Yunfeng joins Chinese consortium in Italy healthcare acquisition

The other participants in the consortium are: Beijing Wandong Medical Technology, a listed medical imaging equipment producer; Shanghai FTX Fund Management; Shanghai Tianyi Industries Holding, a healthcare-focused investment group; Jiangsu Yuyue Medical Equipment, a homecare medical equipment supplier and the largest shareholder in Wandong; and Shanghai Kangda Medical Equipment Group, a manufacturer of medical imaging equipment.

Founded in 1982, Esaote claims to be among the top six companies worldwide for ultrasound diagnostic imaging, with devices featuring this technology accounting for 60% of its business. The company also specializes in MRI imaging and healthcare IT systems for managing hospital departments. It is headquartered in Genoa and has R&D and manufacturing facilities elsewhere in Italy and in the Netherlands.

Esaote went public in Milan in 1996 and was delisted 10 years later through a management buyout backed by investors including NB Renaissance Partners, Value Italy, Equinox, Carlo Castellano, and Carige. Healthcare-focused Ares took a 40% stake in the business in 2009, with the existing shareholders and management holding the remainder.

Following the acquisition, Esaote will continue to operate as an independent company led by incumbent CEO Karl-Heinz Lumpi. The transaction is intended to support growth in China, with Lumpi noting that the country’s ultrasound industry alone is worth nearly EUR1.3 billion ($1.5 billion). Meanwhile, the buyers hope to benefit from Esaote’s R&D capabilities, global brand, product lines, and international distribution network.

“YF Capital believes that Esaote’s partnership with the consortium will create a world class medical technology company. Furthermore, YF Capital’s expertise and experience in diagnostic imaging, big data, artificial intelligence and medical device and service sectors will provide significant contributions to this transaction and the strategic partnership,” David Yu, co-founder of Yunfeng, said in a statement.

Yu, formerly chairman of Focus Media, established Yunfeng in 2010 with Jack Ma, founder and executive chairman of Alibaba Group. Other healthcare-related portfolio companies include WuXi Biologics, a contract R&D services provider that re-listed in Hong Kong earlier this year, and WuXi NextCode, a genome sequencing analysis business with ties to WuXi Biologics. Yunfeng has also been involved in a protracted privatization of iKang Healthcare.

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• Topics
• Greater China
• Europe
• Buyouts
• Healthcare
• China
• Yunfeng Capital