Apax Partners announces sale of Mölnlycke Health Care to Investor AB

26th January 2007

Funds advised by Apax Partners announce the sale of Mölnlycke Health Care Group to Investor AB and Morgan Stanley Principal Investments for €2.85 bn.

London, UK, 26 January 2007.  Funds advised by Apax Partners (Apax), one of the world's leading private equity firms, announce the sale of Mölnlycke Health Care Group (MHCG) to Investor AB and Morgan Stanley Principal Investments (MSPI) for €2.85 bn.

Apax Partners used its expertise in the healthcare sector to identify a buy-and-build opportunity and create a European leader in the global medical products space.

Ian Jones, partner and head of the healthcare team at Apax, said: "This has been a very successful deal for all involved and exemplifies the Apax Partners strategy. Our knowledge of the healthcare sector allowed us to identify a consolidation opportunity in the consumable medical products area, and we are proud to have helped create this unique group. The success of the strategy is due to the hard work and dedication of the management team and employees, and the company is now a global leader in its space." 

John Samuel, CEO of MHCG commented: "This is a great outcome for all concerned. Apax has helped create a strong company poised for significant growth. Investor AB is a long term partner committed to supporting our aspirations, and the management and employees are looking forward to an exciting future. We will continue the progress we have already made in creating a world class medical products company."

In 2003, the Apax healthcare team identified a strong fit between the wound care and surgical businesses owned by SSL International Plc and the wound care and surgical businesses that made up Mölnlycke.

Following extensive negotiations, Apax Partners acquired the wound care division of SSL International (later re-named Medlock Medical) in March 2004 and the surgical gloves unit (Regent Medical) in June 2004.

This positioned Apax well for the subsequent auction of Mölnlycke, which was acquired in June 2005. The three businesses were then merged in August 2005 to form MHCG.

Apax Partners has subsequently been instrumental in helping management drive value in the combined group by assisting post-merger integration, supporting new product development and strengthening the management team.

Notes to Editors

About Apax Partners
Apax Partners is one of the world's leading private equity investment groups.  It operates across the United States, Europe, Israel and Asia and has more than 30 years of investing experience. Funds under the advice of Apax Partners total $20 billion around the world. These Funds provide long-term equity financing to build and strengthen world-class companies. Apax Partners Funds invest in companies across its global sectors of Tech & Telecom, Retail & Consumer, Media, Healthcare and Financial & Business Services.

About Mölnlycke Health Care Group
Mölnlycke Health Care Group ("MHCG") is a leading global medical products company which manufactures and markets single-use wound care and surgical products for the professional health care sector. MHCG holds a top three market position in the European advanced wound care market and is the #1 European single-use surgical products provider.  MHCG has established production facilities in Asia and Europe, and sells into Europe and North America.
 

For further information, please contact:

Ben Harding
T: +44 20 7872 6300
E: ben.harding@apax.com