Carlyle, KKR again compete for Korean dental scanner maker

US private equity giants The Carlyle Group and Kohlberg Kravis Roberts & Co. (KKR) are again competing to acquire the world’s third-largest 3D dental scanner maker.

KKR and a consortium between Carlyle and GS Holdings Co. participated in the final bidding on Wednesday held by Medit’s top shareholder Unison Capital Inc. and Citigroup Global Markets, the advisor for the deal, according to investment banking industry sources.

Two shortlisted pre-qualified bidders -- SK Telecom Co., South Korea’s top mobile carrier, and CVC Partners -- did not join the race, while it was not confirmed if Blackstone Inc., the world’s largest alternative asset manager, submitted a bid.

Carlyle and KKR failed to take over Medit in 2019 as Unison, a mid-market-focused PE firm, bet 320 billion won ($223.7 million) for a controlling stake in the South Korean 3D dental clinic scanning solutions provider. Unison and Medit’s founder Korea University mechanical engineering professor Chang Minho aim to sell a 100% stake in the company for up to 4 trillion won.

US SANCTIONS AGAINST RUSSIA MAY BE HURDLE

Both major PE firms have stepped up their efforts to acquire Medit this time. Carlyle joined hands with South Korean energy-to-retail conglomerate GS Group, which is expanding its bio business with an acquisition of the country’s top botox maker Hugel Inc.

KKR, which has been focusing on property and infrastructure deals in recent years, was known to make all-out efforts to expand the firm.

But Carlyle and KKR may have to give up the takeover due to US sanctions against Russia, which had generated about 10% of Medit’s total sales.

Medit, founded in 2000, has been accelerating growth through active expansions in overseas markets since 2019 when it was acquired by Unison. Its enterprise value was estimated to have surged to more than 3 trillion won from 640 billion won in 2019.

Medit’s earnings before interest, taxes, depreciation and amortization (EBITDA) nearly tripled to 103.9 billion won last year from 36.7 billion won in 2019 with sales more than doubling to 190.6 billion won last year from 72.2 billion won during the period.

Write to Chae-Yeon Kim and Jun-Ho Cha at why29@hankyung.com
Jongwoo Cheon edited this article.