EQT AB is exploring strategic options for its stake in prosthesis firm Ottobock SE including a potential sale, according to people familiar with the matter.
(Bloomberg) — EQT AB is exploring strategic options for its stake in prosthesis firm Ottobock SE including a potential sale, according to people familiar with the matter.
The buyout firm is working with JPMorgan Chase & Co. to study various possibilities for its 20% holding in Ottobock, ranging from a sale to initial public offering, the people said, asking not to be identified because the information is private. Any deal could value the business, which is controlled by German billionaire Hans Georg Näder, at more than €5 billion ($5.3 billion), the people said.
EQT could also opt to keep its investment for longer, the people said. The deliberations come after several rival financial investors expressed interest in buying EQT’s Ottobock stake after a planned IPO of the firm was postponed this summer, the people said.
EQT acquired a 20% stake in Ottobock in a 2017 deal valuing the firm at €3.15 billion. Since 2016, Ottobock has increased revenues by roughly 50% and boosted its earnings before interest, taxes, depreciation and amortization by about 75%, the people said.
Founded by Otto Bock in 1919, the company is a major player in the prosthetics sector, having launched the first completely microprocessor-controlled lower limb prosthesis, among other innovations.
Representatives for EQT, JPMorgan and Ottobock declined to comment.
(Adds adviser in second paragraph. An earlier version of this story corrected headline, first deck headline, paragraphs 1-3 to show only EQT is exploring options for its stake.)
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