SINGAPORE — Temasek Holdings is exploring selling Advanced MedTech, multiple sources have told Reuters after the medical devices firm fully owned by the Singaporean state investor received interest from suitors including buyout funds.

Two investment banks have been tapped to launch a sale process for Singapore-headquartered MedTech, which could be valued at roughly US$1 billion, two of the sources said.

All the sources declined to be named as news of the sale process has not been made public.

A Temasek spokesperson declined comment, while there was no immediate comment from an external spokesperson for Advanced MedTech.

Advanced MedTech, which earns the majority of its business from the United States, is one of the few companies that is fully owned by Temasek, which ranks among the world’s biggest investors.

“It’s not often that you see a company fully owned by Temasek coming to the market,” said one source familiar with the deal process, adding that Advanced MedTech was likely to be viewed as a turnaround story.

U.S. healthcare companies have fared relatively better in the weak equities market this year as investors view these firms as defensive plays in a challenging economic environment.

The sources expect private equity firms, healthcare-focused funds, and strategic investors to put in bids for Advanced MedTech, adding that the deal value is subject to negotiations between the parties.

Advanced Medtech spun out in 2019 from Accuron Technologies Ltd, a Temasek company, as the medical device firm looked to speed up growth and focus on its mainstay urology business.

Advanced MedTech, which also makes investments in medical technology firms, said it reported US$280 million in revenue in the year to March 2022, logging a compound annual growth rate of 15% over the last five years.

In August, Advanced MedTech named a new CFO, Greg Miller, whom it said would be based in the United States.

While announcing the hire, Advanced Medtech’s Group CEO Abel Ang had said Miller’s U.S. and global financial expertise would be “transformative” for it as it accelerates into its next phase of growth.

The company said Miller had a strong track record in executing on strategic mergers and acquisitions and fundraising.

Advanced MedTech has recently increased its M&A activity. It acquired a majority stake in Shenzhen, China-based Wikkon in September, with plans to buy out all remaining shares by the end of the year.

Wikkon was described as China’s market leader in both urology and shockwave therapy devices by the buyer, providing Advanced MedTech with a streamlined expansion path through Wikkon’s existing network of healthcare partners.

Advanced MedTech has 11 regional offices spread across North America, Europe, and Asia Pacific. With a global sales team and distributor network in South America and Africa, it has millions of patients and physicians in 100 countries.

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