Old Mutual has announced the sale of medical devices supplier Medhold to its larger rival, Sanlam, through their respective private equity divisions. Both Old Mutual and Sanlam are the largest insurers in South Africa and also provide various financial services, including private equity investments.
Old Mutual Private Equity (OMPE), part of Old Mutual’s Alternative Investments, boasts 25 years of experience in the South African market. The firm has invested in several prominent businesses, including Primedia, 10X Investments, Tourvest, Consol, and Holdsport.
Medhold’s extensive product offerings encompass anaesthetic delivery systems, orthopaedics, robotic-assisted surgery, minimally invasive surgery, ventilation, and infection control. Since OMPE acquired Medhold in 2018, the company’s earnings have increased 2.6 times, and its product portfolio has expanded significantly.
OMPE highlighted the strong growth potential in the continent’s healthcare sector, driven by demographic trends, rising urbanisation, and increasing demand for quality healthcare services. This growth underscores the need for investment in healthcare infrastructure, medical technology, and skilled expertise.
Chumani Kula, Co-Head of Old Mutual Private Equity, remarked on Medhold as an exemplary investment, showcasing the firm’s ability to identify leading businesses that can serve as cornerstone assets for growth in essential industries within South Africa. He expressed satisfaction with the partnership with Medhold’s management team and noted the company’s readiness for continued growth.
Since 2018, Medhold has experienced workforce expansion, improvements in gender equality, and initiatives like the YES4YOUTH programme aimed at tackling youth unemployment.
Sanlam, Old Mutual’s primary competitor, will now take the reins of Medhold through its private equity arm. Paul Moeketsi, Managing Partner at Sanlam Private Equity, stated that Medhold’s legacy of innovation aligns with their strategy to support market-leading businesses with strong growth potential. He expressed enthusiasm about collaborating with Medhold’s exceptional team to enhance access to world-class medical technology across critical sectors of the economy.
Sanlam Private Equity is poised to drive the next phase of growth for Medhold, further scaling healthcare technology in South Africa. The transaction is pending customary regulatory approvals, with completion anticipated in the fourth quarter of 2025.