LONDON (Reuters) - Private equity firm Apax said on Monday it has agreed to acquire a co-controlling stake in Spain's Palex Medical from investment fund Fremman Capital and other minority shareholders.
Reuters reported on Sunday that Apax planned to acquire the stake.
In a statement, Apax said it will co-control the company with Fremman.
"We have long identified the healthcare distribution sector as an ideal intersection between Apax's deep expertise in MedTech and strong track record of investment in distribution-focused businesses," said Frank Ehmer, partner at Apax.
The transaction is expected to close in the fourth quarter of 2023. Financial terms were not disclosed.
Two sources with knowledge of the deal said the transaction values the Barcelona-based company at around 1 billion euros ($1.1 billion), debt included.
"We are thrilled with the sale transaction and with our subsequent investment to continue supporting...the Company on this next phase of pan-European growth," said Ricardo de Serdio, founding partner and CEO of Fremman.
Bank of America (NYSE:BAC), Jefferies and Credit Suisse (SIX:CSGN) acted as financial advisors on the transaction.
Pérez-Lorca and Uría Menéndez acted as legal counsel to Fremman and management, Sullivan & Cromwell and Garrigues acted as legal counsel to Apax.