For Sale: ENT Device Maker Atos Medical, $1.1 Billion

By Jof Enriquez,
Follow me on Twitter @jofenriq

Private equity firm EQT Holdings is looking to sell Swedish medical device manufacturer Atos Medical for about $1.1 billion, according to sources of the Wall Street Journal.

Atos Medical manufactures ear, nose, and throat (ENT) devices, with a specialty in laryngectomy prostheses and accessories. Their flagship product is the Provox system, consisting of the Provox voice prosthesis, Provox heat and moisture exchanger (HMEs), and Provox adhesives, which are used for speech and pulmonary rehabilitation of patients after laryngectomy. The company also manufactures accessories for tracheostomy and tympanostomy care, as well as jaw mobility rehabilitation.

J.P. Morgan Chase & Co. is advising Stockholm-based EQT on the sale of Atos Medical, according to the WSJ. The asking price for Atos Medical could prove fair, judging by the company's latest financial figures. Between 2012 and 2014, Atos’ annual sales grew 23 percent to 812 million Swedish kronor ($95 million), and the company increased its earnings before interest, taxes, depreciation and amortization (EBITDA) by 47 percent, to 265 million kronor.

Atos Medical could also extend the geographic footprint of the prospective buyer, as Atos Medical has in recent years expanded to more international markets, including Japan, Brazil, and Italy. It has a presence in more than 60 countries worldwide, and has existing sales forces across Europe (Sweden, United Kingdom, Germany, Netherlands, Belgium, Spain, Switzerland, France) and the United States.

Founded in 1986, Atos Medical continues to be a sizable player in the global ENT market, which is projected to reach USD $23.01 million in 2022, according to a 2015 study by Grand View Research.

EQT acquired Atos Medical in 2011 from fellow private equity firm Nordic Capital Fund V. According to the EQT web site, 15 percent of its total investments are into healthcare companies. Some of the firm's notable divestments include oncology diagnostics company Dako (sold to Agilent), dialysis products manufacturer Gambro (sold to Baxter), point-of-care diagnostics provider HemoCue (sold to Quest Diagnostics), and dental equipment maker Sirona, which recently merged with Dentsply.

In December, EQT acquired Lima, an Italian-based manufacturer of orthopedic devices with a growing presence in Europe, Asia-Pacific, and the United States.