Old Mutual Private Equity (OMPE), part of Old Mutual Alternative Investments, has agreed to sell its stake in Medhold to Sanlam Private Equity (SPE), the private equity arm of Sanlam Investments.
The transaction, which is subject to regulatory approval, is expected to be completed in the fourth quarter of 2025.
Medhold, a supplier of medical devices across Southern Africa, formed part of OMPE Fund IV’s portfolio. OMPE invested in the company in 2018, and Medhold’s earnings have grown 2.6 times. OMPE attributed the growth to the strength of the management team and its ability to execute the strategy of building a regional medical devices leader.
While under OMPE’s ownership, Medhold expanded its product offering and completed a number of strategic bolt-on acquisitions. The company now supplies a wide range of devices used in anaesthetic delivery, orthopaedics, robotic-assisted and minimally invasive surgery, cardiology, infection control, maternal and infant care, and surgical workspaces.
Chumani Kula, co-head of OMPE, said the investment demonstrated OMPE’s ability to identify and grow strong businesses in key sectors.
“Medhold has been an exemplary investment, showcasing 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, whilst partnering with strong management teams,” Kula said.
He added that OMPE aimed to scale Medhold’s customer offering and position it as “the pre-eminent medical devices player across Southern Africa”. Kula said OMPE was pleased to hand over the company “in a formidable position, primed for continued growth” under the new ownership of SPE.
OMPE noted that Medhold’s growth was accompanied by progress in transformation and employment initiatives. The company increased female representation in its workforce and management and participated in the YES4YOUTH programme, providing training and work opportunities to young South Africans. Medhold has also supported state hospitals as part of its community outreach efforts.
Medhold’s chief executive, Matthew Stephens, said the partnership with OMPE has been instrumental in the company’s expansion.
“Their exceptional ability to quickly assimilate and evaluate strategic information in a dynamic, fast-paced industry has been instrumental to our sustained growth. Looking forward, we welcome the opportunity to work with the equally talented team from Sanlam Private Equity,” he said.
SPE managing partner Paul Moeketsi said the acquisition aligned with Sanlam’s strategy of investing in market-leading businesses with strong growth potential.
“This partnership supports a healthier future for all South Africans. Medhold’s legacy of innovation aligns with our strategy to back market-leading businesses with strong growth potential. 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,” Moeketsi said.
