Swedish investment firm Investor and Morgan Stanley are buying Molnlycke Health Care Group for 2.85 billion euros ($3.7 billion), the companies said Friday.
The majority of the acquisition from private equity firm Apax Partners will be financed by external debt, Investor said in a statement.
Molnlycke, based in Goteborg, Sweden, makes wound care and surgical products primarily for the professional health care sector. It had sales of about 760 million euros ($986 million) in 2006.
An acquisition company will be set up, equally controlled by Investor and Morgan Stanley Principal Investments, with Monlycke's management as minority shareholders, the statement said.
"Investor's share of the equity capital and shareholder loans will amount to 620 million euros($804 million), corresponding to about 65% of the aggregated equity and shareholder loans invested by Investor and Morgan Stanley," the Swedish company said.
The deal is subject to regulatory approval.