Medical display manufacturer D&T entered a sale process with at least five private equity bidders participating in the preliminary auction. Skylake Equity Partners and Eum Private Equity are among the participants, according to investment banking sources. Highland EP acquired 98.1% of D&T in July 2024 for 172.7 billion won and is now seeking an exit at an estimated enterprise value of 450 billion to 500 billion won. The accelerated sale timeline reflects D&T's operating profit growth from 20.5 billion won in 2024 to 26.8 billion won in the following year, with expected EBITDA reaching approximately 45 billion won this year. The company's valuation multiple of 10-11 times projected EBITDA stems from its dual revenue streams combining stable medical display demand with expanding casino and marine display applications. Samjong KPMG is serving as the sell-side advisor for the transaction.
Highland EP Acquired D&T in July 2024 for 172.7 Billion Won
Highland EP acquired 98.1% of D&T in July 2024 for 172.7 billion won, purchasing stakes from Costone Asia and existing management. Highland EP raised a 90 billion won project fund with Korea Military Mutual Aid Association and Korea Development Bank as lead investors, combined with approximately 50 billion won in acquisition financing. Existing management and Donga ST participated as subordinated investors in the transaction structure.
D&T Revenue Increased 8.8% with Operating Profit Margin Reaching 20.6%
D&T recorded revenue of 119.6 billion won in 2024, which increased to 130.1 billion won the following year, representing 8.8% growth. Operating profit rose from 20.5 billion won to 26.8 billion won during the same period, a 30.7% increase. The operating profit margin improved from 17.1% to 20.6%, an expansion of 3.5 percentage points. The company's expected EBITDA for this year is approximately 45 billion won. D&T holds approximately 50 billion won in cash.
D&T Supplies Medical Monitors with Certification Requirements Creating Entry Barriers
D&T was established in 1999 and develops medical monitors used in hospital operating rooms and PACS (Picture Archiving and Communication System) displays. The company acquired Wide, a diagnostic and reading display manufacturer, in 2013 to expand its medical display business. Medical monitors used in surgery and image interpretation require accuracy in color and contrast, durability, and stability. Products must pass various certifications and customer quality verification processes. The certification and verification requirements create higher entry barriers compared to general-purpose displays and make supplier switching more difficult, according to the source.
D&T Expanded Product Lines to Casino Gaming and Marine Displays
D&T expanded its business to special-purpose displays installed in casino gaming equipment and ships, applying high-specification and customized design technology. Customer-specific specifications and quality verification are important factors in these markets, allowing the company to avoid simple price competition. The diversification spreads revenue sources beyond the medical sector to multiple downstream industries.
FAQ
What was the acquisition price when Highland EP bought D&T in July 2024?
Highland EP acquired 98.1% of D&T for 172.7 billion won in July 2024, purchasing stakes from Costone Asia and existing management.
How much did D&T's operating profit increase in the year following the 2024 acquisition?
D&T's operating profit increased from 20.5 billion won in 2024 to 26.8 billion won in the following year, representing a 30.7% increase, with the operating profit margin expanding from 17.1% to 20.6%.
Which private equity firms participated in the preliminary auction for D&T?
At least five bidders participated in the preliminary auction, including Skylake Equity Partners and Eum Private Equity, with Samjong KPMG serving as the sell-side advisor.
