Longreach sells Hong Kong medical devices player to Boyu

The deal is worth about USD 600m, according to Bloomberg. Mergermarket, AVCJ’s sister publication, reported last month that Boyu was selected as the preferred bidder after overcoming competition from the likes of Hillhouse Capital, BPEA EQT, CVC Capital Partners, and FountainVest Partners. Some of these GPs submitted unsuccessful bids; others withdrew from the process.

North Asia-focused Longreach acquired an 86% interest in Quasar from the founding family via its third fund, which closed on USD 650m in 2019. Japan is the firm’s core market; there tends to be some kind of Japan-related value creation angle to deals elsewhere in the region.

Established in 1988, Quasar is a contract development and manufacturing organisation (CDMO) that specialises in complex minimally invasive cardiovascular catheters. It also supplies disposable devices such as respiratory tube sets and electronic devices like blood pressure monitors and pulse oximeters. Manufacturing takes place in China and Thailand, while there is an engineering site in Israel.

Customers include medical device original equipment manufacturers Johnson & Johnson, Medtronic, Terumo, Abbott Laboratories, and Boston Scientific.

In addition to transitioning Quasar to its first non-founder family-led management team, Longreach helped the company develop a global business footprint that now encompasses Greater China, Thailand, Singapore, Israel, the US, Japan, and Ireland.

Boyu is currently deploying its fifth China fund, which closed on USD 6.3bn in the first quarter of 2021. It comprises a flagship fund and a smaller growth vehicle.

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• Topics
• Greater China
• Trade sale
• Healthcare
• Hong Kong (China)
• China
• The Longreach Group Limited
• Boyu Capital
• manufacturing
• medical devices