AGIC Capital Revives Sale of Medical Laser Firm Fotona

AGIC Capital, the private equity firm led by Chinese dealmaker Henry Cai, has restarted a sale of medical laser company Fotona d.o.o. after postponing it due to Covid-19, people with knowledge of the matter said.

AGIC continues to work with Royal Bank of Canada as an adviser and has reached out to prospective suitors to gauge interest in the business, said the people, who asked not to be identified as the information is private. The buyout firm is seeking a value of at least $800 million for Fotona in a deal, one of the people said.

The planned launch of the sale was delayed last year due to the coronavirus pandemic, the people said. Bloomberg News reported in December 2019 that AGIC could start a formal sale process for Fotona the following year.

Founded in 1964, Fotona is based in Slovenia and Dallas, Texas, and has regional subsidiaries in China and Germany, according to its website. Its products use laser technology for dermatology treatments including skin tightening and tattoo removal. It also makes machines used in dentistry as well as to treat conditions including incontinence and varicose veins.

Deliberations are ongoing, and AGIC could decide to keep the business, the people said. A representative for AGIC and an external representative for Royal Bank of Canada declined to comment.

Companies using laser technology for minimally invasive surgeries and aesthetic treatments have drawn buyer interest in recent years. Boston Scientific Corp. announced in March it had agreed to acquire Israel’s Lumenis Ltd.’s surgical business, which includes laser systems used to treat kidney stones, for $1.1 billion.

Shanghai Fosun Pharmaceutical Group Co., backed by Chinese billionaire Guo Guangchang, bought Alma Lasers Ltd. in 2013. It renamed the Israeli company Sisram Medical Ltd. and listed it through a Hong Kong initial public offering four years later, raising about $127 million.

©2021 Bloomberg L.P.

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