GS joins Carlyle to bid for Korea's dental scanner maker Medit, pitted vs KKR

Multinational capital Kohlberg Kravis Roberts (KKR) and Carlyle Group are vying for Korean 3D dental scanner maker Medit in a deal near 4 trillion won ($2.8 billion).

According to the investment banking industry on Wednesday, KKR and Carlyle’s consortium with GS Group submitted their letters of intent to buy 100-percent stake in Medit being offered by Unison Capital.

Other potential aspirants SK Telecom, CVC Capital Partners, and Blackstone have bowed out of the race, according to sources familiar with the deal. A preferred bidder will likely be selected next month.

Unison Capital is after 4 trillion won for the ownership handover. But the two bidders are said to have placed lower prices as financing rates hover at 7 percent to 8 percent. Citigroup Global Markets manages the deal.

Korea’s eighth largest conglomerate GS Group has joined the Carlyle consortium to enhance its bio and healthcare businesses. It acquired Hugel, a botulinum toxin producer, in April this year. It selected Morgan Stanley and UBS as financial advisors for the deal.

KKR hired Credit Swisse and JP Morgan advice the deal which could be the first M&A in a Korean bio firm.

Medit, founded in 2000 by MIT graduate Dr. Chang Min-ho, expanded after Unison took up 51 percent stake and management rights for 320 billion won in 2019. It has grown to become global No. 2 in dental oral scanner sales.

Its sales amounted to 190.6 billion won last year, growing 2.5 times since 2019. Its earnings before interest, taxes, depreciation and amortization (EBITDA) tripled to 104.9 billion won during the same period. The market project sales this year to exceed 300 billion won, with its EBITDA at 200 billion won.

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