GS Holdings consortium chosen as preferred bidder for Medit

GS Holdings headquarters in Yeoksam-dong, southern Seoul [GS HOLDINGS]

A GS Holdings-Carlyle Group consortium has been selected as the preferred bidder to acquire Medit, a Seoul-based company manufacturing 3-D dental scanners.

On Tuesday, GS Holdings said it had received a letter confirming that the consortium had been selected.

Washington-based, Nasdaq-listed Carlyle Group is a private equity company.

A consortium with the participation of Kohlberg Kravis Roberts, also a private equity company, also bid but wasn't selected.

Medit is owned by Unison Capital Korea and company founder Jang Min-ho and related parties. The company received a valuation of 3.2 trillion won following a refinancing by Unison Capital in May, with the acquisition price expected to be around its recent valuation.

GS Holdings wrote in a regulatory filing Tuesday that the acquisition is not final and negotiations are still ongoing.

Medit reported revenue of 190.6 billion won in 2021, up 129 percent on year. Net profit jumped 201 percent on year to 87 billion won. The company was founded in 2000 and now exports dental scanners to about 50 countries.

The scanners are priced between $12,000 and $18,000 each, and scanner tips are $75 a piece, though they can be reused with proper cleaning sterilization.

GS Holdings, traditionally focused on oil refining and convenience stores, has been diversifying and seeking new business opportunities.

Biopharmaceuticals is one new area for the company.

In August last year, the GS Holdings together with private equity companies bought 46.9 percent of Hugel for 1.7 trillion won. The company is a manufacturer of botulinum toxin, and has a 50 percent of the market in Korea.

GS Holdings also participated in a $140-million Series B funding round for RVAC Medicines, an mRNA vaccine maker based in Singapore, along with Pavilion Capital and EDBI.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]