Quadria acquires Malaysia’s Straits Orthopaedics
Singapore-headquartered healthcare specialist Quadria Capital has acquired a majority stake in Malaysian contract devices manufacturer Straits Orthopaedics at an enterprise value of USD 240m.
Malaysia-listed Apex Healthcare confirmed the valuation in a filing regarding the sale of its 40% stake in the company, which it acquired in 2014. The filing noted the transaction would result in Quadria indirectly owning 100% of Straits through a holding company structure, although Apex, Malaysia’s Employees Provident Fund, and Straits CEO T.H. Su will retain minority positions.
Su has been reappointed as the CEO and a director of Straits to chart the direction and growth of the company for the next five years. The transaction is expected to close in the first half of 2023.
“[W]e are now looking to cement our market-leading position and institutionalize our vision. I am pleased to partner with Quadria Capital in the next phase of our company’s growth,” Su said in a statement. “Quadria’s financial resources and focus on operational value creation make the firm an ideal long-term partner to help us achieve our goals.”
Founded in 2003, Straits manufactures orthopaedic implants, surgical tools, and instruments for large medical device companies globally. It is considered a regional leader in its category with several international regulatory and compliance certifications, including registration with the US Food & Drug Administration.
The global orthopaedic devices market is generally estimated to be worth about USD 45bn, the vast majority of which is consumed in developed economies with rising manufacturing costs. Ageing trends in various geographies globally are expected to accelerate market growth, while geopolitical supply chain disruptions are expected to play to benefit Southeast Asian providers.
Quadria has more than USD 2.8bn in healthcare assets under management across South and Southeast Asia. The private equity firm is currently raising its third fund with a tentative target of USD 800m. The first two funds closed on USD 304m in 2015 and USD 595m in 2020.
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