Boyu Capital to buy Hong Kong-based medical device maker Quasar from Longreach Group in US$600 million deal
- Buyout firm Boyu beat out other suitors including companies in the industry and other private-equity firms, sources say
- Investment firm Longreach Group bought a majority stake in Quasar from the founding family in 2019 for an undisclosed amount
Buyout firm Boyu Capital has agreed to acquire Hong Kong-based Quasar in a deal that values the medical device maker at more than US$600 million, people familiar with the matter said, marking another transaction in the healthcare sector which has become a rare bright spot for deal makers.
Boyu has emerged as the buyer for Quasar after beating out other suitors including companies in the industry and other private-equity firms, the people said, asking not to be identified because the matter is private. A transaction has the support of Quasar’s global healthcare customers and is expected to close soon, the people said.
Quasar’s owner Longreach Group has been considering a sale of its majority stake in the business after other industry players and investment firms showed interest, Bloomberg News reported in October. It was seeking a valuation of about US$300 million to US$400 million for the business. Representatives for Boyu and Longreach did not immediately respond to requests for comment.
The Quasar deal is adding to the momentum of healthcare deal making despite a global slump in mergers and acquisitions. Transaction volumes in Asia-Pacific for the sector in 2023 to date are down 11 per cent versus the same period last year, according to data compiled by Bloomberg. That is a smaller decline than the 37 per cent year-on-year drop for deal making as a whole within the region.
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Established in 1988 in Israel, Quasar is a contract development and manufacturing organisation that makes minimally invasive devices, catheters and sensors, according to its website. The company has six manufacturing operations and more than 3,000 employees globally.
Longreach, an investment firm with a focus on upper mid-market buyouts in Japan and Greater China, bought a majority stake in Quasar from the founding family in 2019 for an undisclosed amount. Under its ownership, the company has expanded both organically and via acquisitions.
