Sanlam Private Equity inks deal to acquire Old Mutual Private Equity’s Medhold

Old Mutual Private Equity (OMPE), which has carved a name for itself over the past two decades as SA’s leading investor in privately owned businesses, is exiting its investment in medical devices supplier Medhold, seven years after investing in the outfit.

OMPE’s rival in the private equity space, Sanlam Private Equity, has signed a deal to acquire Medhold for an undisclosed amount.

What is certain is that OMPE’s stake in Medhold would fetch a tidy sum as the business has grown substantially since being founded 27 years ago — growth that speeded up since 2018 when OMPE invested in the group.

In 2019, Medhold entered into two transactions when it acquired a division of Conmed Ortho’s manual instruments business and was appointed Radiometer’s exclusive distributor for state sector blood gas analysers.

In 2022, the entity acquired Acumed Orthopaedic Portfolio from Affmed. More importantly, under OMPE’s ownership, Medhold expanded into critical medical technologies including robotic surgery and patient monitoring.

Chumani Kula, co-head of  OMPE, said the Medhold deal highlighted the growing role of private equity in advancing healthcare access.

“Medhold has been an exemplary investment, showcasing our ability to identify leading businesses that can act as cornerstone assets to buy and build upon, to effect growth within essential industries in SA, while partnering with strong management teams,” said Kula. “Since OMPE’s initial investment in Medhold in 2018, the company’s earnings have grown by 2.6 times.”

OMPE has over the past 26 years invested more than R12bn and delivered R35bn in realised and unrealised value across 38 transactions and 26 exits.

Medhold CEO Matthew Stephens, who was part of a management buyout in 1998 and oversaw the OMPE deal 20 years later, said the private equity investor had helped grow the business into a leading Southern Africa player.

“We have had the privilege of partnering with the OMPE team since July 2018. Their exceptional ability to quickly assimilate and evaluate strategic information in a dynamic, fast-paced industry has been instrumental to our sustained growth.”

OMPE’s Medhold exit comes just a month after it agreed to acquire a majority shareholding in Honoris United Universities, the first and largest pan-African private higher education platform.

Khumalok@businesslive.co.za