LONDON (May 24)—SSL International P.L.C. has sold its Regent medical glove and Hibi antiseptic business for $308 million to a management buyout team, funded through European venture capital firm Apax Partners & Co. Ventures.
SSL, which will focus on its consumer products—Durex condoms and Scholl foot care range—has been trying to sell the healthcare business since early 2003. The deal, which is expected to be finalized by June 26, awaits approval by SSL shareholders, regulatory authorities in Malaysia and competition authorities in the U.S., SSL said. The buyers will pay $290 million in cash or equivalents and assume some $18 million of debt.
The new firm will be called Regent Medical. The deal includes Regent's surgical glove manufacturing and packing facilities in Malaysia. About 2,081 employees will transfer to Regent Medical, 1,900 of whom are based in Malaysia. Regent's sales in the year ended March 31 were about $200 million, with operating profit of $47 million.
SSL said in a statement that it will use the proceeds to reduce group borrowings.
Apax runs the largest pool of private equity investment money in Europe, with $3.7 billion targeted toward acquisitions there.