Sanlam acquires Medhold Medical

Sanlam Private Equity has completed the acquisition of Medhold, a supplier of medical devices and surgical equipment, further entrenching its position in the healthcare sector across South Africa and select African markets. This move serves to reinforce Sanlam's healthcare portfolio and exhibits Standard Bank's capability as a key financier in substantial structured transactions within the region.

The financial details of the transaction remain undisclosed; however, Standard Bank played a pivotal role as the sole investment bank and lead arranger, providing a tailored funding package that supported the acquisition. Medhold, a well-regarded distributor, serves both public and private healthcare institutions, including major hospital groups and smaller surgical centers. The company not only distributes a diverse range of high-quality medical devices from international OEMs but also offers critical after-sales services such as maintenance and technical support.

Sanlam Private Equity, a division of Sanlam Alternative Investments, focuses on partnering with mid-market companies exhibiting strong growth potential. This acquisition aligns with their strategy to enhance business operations through better governance and professional management. According to Paul Moeketsi, managing partner at Sanlam Private Equity, the transaction is in line with their philosophy of formalizing and scaling businesses like Medhold, regarded as vital cogs in the South African economy.

In the competitive landscape of medical devices, this acquisition is significant. It not only amplifies Sanlam Private Equity's investment in healthcare but also underscores the importance of fortified supply chains and governance structures. With the backing of Standard Bank, which has reiterated its commitment to the healthcare sector, Medhold is well-positioned to expand its capital base, innovate, and diversify its offerings further.

With the acquisition now finalized, following initial regulatory approval in October, Medhold anticipates leveraging enhanced capital resources provided by SPE. This new phase under Sanlam’s ownership is expected to usher in greater strategic support, aimed at bolstering the company's presence and operational efficiency in the healthcare market.