Cathay Capital, OrbiMed sell Echosens stakes to Astorg
Cathay Capital Private Equity and OrbiMed have exited Echosens, a France-based medical diagnostic equipment company owned by China’s Inner Mongolia FuRui Medical Science, to European PE firm Astorg.
The value of the transaction was not disclosed. FuRui remains the reference shareholder in the company following the deal, according to a statement.
Founded in 2001, Echosens specializes in non-invasive diagnostic devices for hepatology. Its products support physicians in their assessment of patients with various types of chronic liver diseases. FuRui acquired the company in 2011, with a view to bringing advanced technology from overseas to China.
In May 2015, a consortium led by Cathay Capital paid FuRui EUR52.5 million ($65 million) for a 49% interest in Echosens and committed a further EUR30 million to support M&A and R&D activity. Cathay’s contribution to the deal was EUR40 million, while the other two investors – OrbiMed and Luxemburg Sunshine International – put in EUR18 million and EUR24.5 million, respectively.
Echosens has since accelerated its internationalization process by creating subsidiaries in the US – currently the main market for the company – and in China. Cathay helped the company set up a production plant in Shenzhen, develop new products and technology, as well as revamp its distribution strategy, the GP said.
Echosens sells its products in more than 80 countries directly or through a network of 40 distributors. It reported an overall turnover of EUR66 million last year, a 27% increase on 2016.
Echosens was the first investment from Cathay’s Sino-French Midcap Fund, which closed at EUR500 million in 2014. The vehicle mainly invests in China and France, with small allocations to Europe and the US. It recently acquired a majority stake in German auto-parts maker E. Winkemann from Equistone Partners Europe.
With a focus on cross-border middle-market investments, Sino-French Midcap Fund II is currently in the market, targeting $1.2 billion. Anchored by China Development Bank and Bpifrance, an investment firm backed by the French government, the new vehicle is expected to hold a first close by June 2018.
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