NB Renaissance Partners et al. exit Esaote

Alessia Argentieri
19 April 2018

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Neuberger Berman's Italian private equity branch, NB Renaissance Partners, has sold its stake in medical equipment company Esaote to a Chinese consortium, which wholly acquired the business.

The consortium bought all the shares in the business, including those held by Ares Life Sciences, Value Italy, Equinox, Carlo Castellano and Carige.

With the fresh capital, Esaote will aim to boost its growth strategy by accessing the Chinese medical equipment market.

Following the deal, the company will continue to operate as an independent entity with its own brand, while its CEO, Karl-Heinz Lumpi, will continue to lead the business.

The acquisition was first announced in December 2017, but the process was slowed down by an Italian government valuation of the deal and several technicalities.

The consortium acquiring Esaote is composed of private equity fund YF Capital, equities fund Shanghai FTZ Fund, investment group Tianyi Industries Holding and medical equipment manufacturers Wandong Medical Technology, Yuyue Science & Technology Development and Kangda Medical Equipment.

Previous funding
In 2009, Ares Life Sciences acquired a 40% stake in Esaote, while Intesa Sanpaolo acquired a 20% holding, Equinox and MPS Venture secured a 13% stake each and Carige bought an 8% holding. The remaining stake was retained by the company's management team. The deal valued the company at approximately €280m.

When it was launched in 2015, NB Renaissance Partners inherited a portfolio of assets from Intesa Sanpaolo and Neuberger Berman, including the Esaote stake.

Company
Esaote is headquartered in Genoa, has R&D and manufacturing facilities in Italy and the Netherlands, and employs 1,200 people. The company specialises in medical imaging equipment, focusing on ultrasound devices, MRI scanners and software for the diagnostic process. In 2016, Esaote generated revenues of €270m.

People
Esaote – Karl-Heinz Lumpi (CEO).
YF Capital – David Yu (co-founder).
Shanghai FTZ Fund – Wu Jianping (general manager).

Advisers
Company – Bonelli Erede (legal).
Vendors – Rothschild (corporate finance); Legance (legal).
Acquirer – Moelis & Company (corporate finance); Freshfields Bruckhaus Deringer (legal).