Mubadala supports buyout of Korea's Osstem Implant
Mubadala Investment has invested in Osstem Implant, a Korean manufacturer of dental implants that was taken private by MBK Partners and UCK Partners (formerly Unison Capital Korea) earlier this year.
The delisting was completed in August after the private equity firms gained traction with a tender offer that gave Osstem an enterprise value of KRW 3.64trn (USD 2.7bn). MBK and UCK initiated the process in January, submitting a bid to purchase 11.1m shares – or a 71.8% stake – for KRW 190,000 apiece.
By late February, 9.5m shares had been tendered, comfortably exceeding the minimum acceptance threshold. In April, the consortium crossed the 95% threshold that allowed it to move towards a delisting. The private equity firms worked with Kyu-ok Choi, Osstem’s chairman and largest shareholder, who agreed to tender about half his stake but remains the second-largest shareholder with 9.6%.
Established in 1997, Osstem produces a range of dental implants, oral imaging equipment, orthodontic materials, oral health medicines, and dental clinic equipment. It is the world’s fourth-largest manufacturer of dental implants, with facilities in Korea and the US, according to a statement. The company trains more than 110,000 dentists globally each year through a network of 120 training centres.
Sales for the 12 months ended December 2021 came to KRW 824.6bn, up from KRW 631.6bn a year earlier. Dental implants account for 78.4% of revenue. Over the same period, net income fell from KRW 103.5bn to KRW 23.4bn.
"With the growing prevalence of dental disorders and demand for cosmetic dentistry across the globe, access to comprehensive dental solutions plays a vital role in improving public health,” said Camilla Macapili Languille, Mubadala’s head of life sciences. She added that the Abu Dhabi sovereign wealth fund would help Osstem scale in the high-growth value segment globally.
Luca Molinari, head of direct investments in Asia at Mubadala, noted that the firm is seeing numerous attractive opportunities in the Korean market.
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