Australian medical device supplier Device Technologies has had early engagement with potential buyers as its private equity (PE) owner Navis Capital Partners gets ready to exit, according to two sources familiar with the situation.

Both sources said that the business has attracted some global PE funds, with the first source noting that the vendor has met strategic players and the second source adding that at least one domestic PE fund is also looking.

The two sources slightly differed on the timing of the process, advised by Morgan Stanley and Jefferies. The second source said that non-disclosure agreements (NDAs) had been sent around early February and the data room should have been opened by now. However, the first source said that the data room has not opened yet and no formal books would be out until June or July.

The first source added that the sale process will not be formally launched until Device Technologies’ full-year results, due to be delivered in June.

The company’s EBITDA is likely to be in the range of AUD 110m-AUD 120m (USD 70m-USD 77m), with 30% coming out of Southeast Asia (SEA), according to the first source.

The valuation would be well above AUD 1bn, which means among sponsor buyers, large global PE firms would be more likely to look at this opportunity, the second source noted. The main concern of those potential buyers, however, is that one single large client Intuitive Surgical, the California-based surgical robots maker, accounts for a significant proportion of Device Technologies’ revenue, according to the same source.

Navis bought Device Technologies at the end of 2018 for AUD 700m from Pemba Capital Partners and HarbourVest Partners, according to Mergermarket records. Since then, Device Technologies has made a series of acquisitions to expand in Australia and SEA. The company’s CEO previously told Mergermarket that the business operates in Singapore, Vietnam, Malaysia, Thailand, the Philippines, and Hong Kong.

Its most recent acquisition, in January this year, of Australian oncology equipment specialist DTect Innovation for an undisclosed deal value, was aimed at shoring up its offering in oncology, as announced.

Now most acquisitions have happened and integration of those acquired businesses is well underway, the first source said.

A third source said that the company could potentially consider more acquisitions as it would not make sense to stop the acquisition momentum even while approaching a sale, so the growth could continue under a new owner.

Device Technologies is a diversified supplier of medical solutions to hospitals and medical professionals, with its products varying from small consumables like gloves to very high-end equipment like surgical robots. It has more than 200 trusted brands and 1,000 employees across Australia, New Zealand and Asia, according to its website.

Navis and Device Technologies declined to comment.