3i exits Asian medical device maker LHi to US trade buyer

Immediate proceeds from the transaction, excluding capital held in escrow, are approximately GPB39 ($63 million) million. 3i acquired LHi alongside company management in a EUR72 million ($91 million) deal, although it said in a statement that the original equity investment was GPB16 million. Baring Asia bought a 55% stake in the business for an undisclosed sum in 2006.

LHi was founded by Singaporean entrepreneur Jay Pok and carries out most of its manufacturing in Shenzhen, China. The company produces medical cables. It claims to be the only Asia-based supplier to sell medical cable assemblies exclusively to medical device companies and original equipment manufacturers internationally.

When 3i invested, LHi was primarily focused on producing cables used in patient monitoring, but it has since moved into more technically demanding and higher value areas, such as cables for surgical and video endoscopy applications. In addition to guiding this transition, 3i brought in Scott Hayden as CEO and Alberto Bautista, formerly of Baxter International, as chairman.

During the private equity firm's ownership period, EBITDA has almost doubled and revenues have tripled from $31 million in 2006 to more than $100 million. The company employs over 2,000 people in China has offices in Hong Kong, the US, Germany and Malaysia.

"We are proud to have supported LHi over the past six years, during which the Company significantly expanded its product range, took advantage of increased medical outsourcing and tripled its revenues. We believe Carlisle will give LHi the opportunity to build upon the success it has achieved to date," said John Thomson, a partner at 3i.

Carlisle is a diversified manufacturer serving a broad range of niche markets, including commercial roofing, energy, agriculture, mining, construction, aerospace and defense electronics, foodservice, healthcare and sanitary maintenance. It claims to operate as a group of centralized operating companies led by entrepreneurial management teams.

Net income came to $3.22 million in 2013, down from $4.22 million the previous year. Sales increased over the same period to $2.9 billion from $2.8 billion. The food service products division accounted for $239 million in sales, and of that sum healthcare was responsible for 31%.

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• Topics
• Exits
• Healthcare
• Greater China
• Southeast Asia
• healthcare
• manufacturing
• 3i Asia Pacific
• Exit
• Trade sale
• Singapore
• China
• USA