Device Technologies sale on hold until financial results released

Device Technologies operates in orthopaedics, critical care, microsurgical robotics and cardiothoracic surgery.

Private equity firm Navis Capital is believed to be positioning itself to fire the starting gun on its Device Technologies sale process around the end of the group’s financial year.

It means that the business will not be available for suitors to buy until at least June.

Earlier, some had expected that the business may come up for sale toward the end of March.

The understanding is the group wants to enable suitors to see the results of the company once Asian mergers and acquisitions have been bedded down in the business to provide a more accurate snapshot of its profits.

As earlier reported by DataRoom, The Carlyle Group and CVC Capital are believed to be keen participants for the $1bn-plus business that has Jefferies and Morgan Stanley lined up for the sale.

Navis Capital has bankers at Jefferies and Morgan Stanley preparing documents for the sale of Device Technologies and is expected to come to market within weeks.

Navis purchased Device Technologies for just over $700m from Pemba Capital and its founders in 2018 when it was earning about $70m annually, but the asking price now is expected to be more than $1bn.

Device Technologies generates profits by securing Australian distribution rights for products from overseas companies for at least 10 years, and getting them on the Australian Register of Therapeutic Goods.

It operates in Australia, New Zealand and Asia in the areas of robotics, orthopaedics, critical care, microsurgical robotics and cardiothoracic surgery.