Cathay and OrbiMed divest Echosens to Astorg

Chinese Pharmaceutical company Inner Mongolia FuRui will remain the "reference shareholder" following the deal, according to a statement.

The deal brings to an end the medical diagnostics equipment company's plans for an IPO on the Hong Kong stock exchange, which were initially shelved in July 2017, according to the Hong Kong Economic Journal. The proposed flotation was reportedly intended to raise $100m.

It also marks the first divestment from Cathay's Sino-European MidCap fund, which closed in December 2014 on €500m. A spokesperson for Cathay declined to comment on the deal valuation or returns generated from the exit.

Astorg is currently investing from its €2.1bn sixth fund, which closed in June 2016.

During the vendors' holding period, the business expanded internationally, opening subsidiaries in the US and China. It also invested in the development and launch of new products.

According to the statement, Echosens increased its turnover by 27% between 2016 and 2018.

Previous funding
Cathay led a €30m financing round for Echosens alongside OrbiMed in April 2015. Cathay, OrbiMed and an unnamed Chinese fund held a 49% stake following the deal, with FuRui holding the remaining 51%.

Company
Founded in 2001, Paris-headquartered Echosens develops non-invasive medical devices for chronic liver disease diagnosis. Its products use vibration-controlled transient elastography technology to quantify liver fibrosis in order to diagnose hepatic injuries.

Echosens has direct operations across Europe, China and the US. It generated a turnover of €66m in its most recent financial year, according to the statement.

People
Astorg Partners – Thierry Timsit (managing partner); Judith Charpentier (director).
Cathay Capital – Hervé Descazeaux (managing partner).
Echosens – Laurent Sandrin (chairperson, chief technology officer).

Advisers
Vendors – DLA Piper, Sarmad Haidar, Laurent Asquin (legal).
Equity – Natixis Partners (M&A); BCG (commercial due diligence); EY (financial due diligence, tax); Dechert (legal); Paul Hastings (legal).
Company – Baker McKenzie, Matthieu Grollemund, Hélène Parent (legal).
Management – Jeausserand Audouard, Alexandre Dejardin (legal); Dargent Avocats, Alexis Dargent (legal).
Debt – Clifford Chance (legal).

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• Topics
• Exits
• Buyouts
• France
• Healthcare
• France
• Astorg Partners
• Cathay Capital
• Secondary buyout
• DLA Piper
• Natixis
• EY (Ernst & Young)
• Dechert
• Clifford Chance