Two of South Africa’s largest companies strike deal for massive sale
Old Mutual is selling medical devices supplier Medhold to its larger rival, Sanlam, via their respective private equity businesses.
The Sanlam and Old Mutual groups are the two largest insurers in South Africa, and both operate other financial service offerings, including private equity.
Old Mutual Private Equity (OMPE) forms part of Old Mutual’s Alternative Investments and has 25 years of experience in South Africa.
It has invested in many well-known South African businesses, such as Primedia, 10X Investments, Tourvest, Consol and Holdsport.
Medhold’s product range includes anaesthetic delivery systems, orthopaedics, robotic-assisted surgery, minimally invasive surgery, ventilation, infection control and more.
Since OMPE took over in 2018, the company’s earnings rose 2.6 times, with the company’s product portfolio also expanding significantly.
OMPE noted that the continent’s healthcare sector is poised for strong growth driven by demographic trends, rising urbanisation and further demand for quality healthcare services.
This will highlight the importance of investment in healthcare infrastructure, medical technology and skilled expertise.
“Medhold has been an exemplary investment,” said Chumani Kula, Co-Head of Old Mutual Private Equity.
“It showcased our ability to identify leading businesses that can act as cornerstone assets to buy and build upon, to effect growth within essential industries in South Africa.”
“We enjoyed a strong partnership with a very high-quality management team, and we are pleased to leave the company in a formidable position, primed for continued growth.”
Since 2018, Medhold has seen growth in its workforce, improved gender equality and transformation, and invested in the YES4YOUTH programme to address youth unemployment.
Old Mutual’s largest competitor, Sanlam, will now take over Medhold via its private equity business.
“Medhold’s legacy of innovation aligns with our strategy to back market-leading businesses with strong growth potential,” said Paul Moeketsi, Managing Partner at Sanlam Private Equity.
“With the urgent need for healthcare investment in the country, we are excited to partner with Medhold’s exceptional team to expand access to world-class medical technology across critical sectors of the economy.”
Sanlam Private Equity is set to drive the next growth phase, helping to scale healthcare technology further.
The transaction is subject to customary regulatory approvals, with completion expected in Q4 2025.
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