Private equity company Apax is reportedly planning to purchase a 50% interest in Palex Medical from investment fund Fremman and other minority stakeholders in a deal valued at approximately €1bn ($1.1bn), Reuters reports.

Fremman was the majority shareholder of Palex before the agreement and will retain 50% ownership in an entity that will have control over the company.

According to the sources, Apax and Fremman will work with the management team of Palex, which also has a minority interest and the transaction will also include the company’s debt.

This deal has been agreed based on the company's projected earnings before interest, taxes, depreciation and amortisation of €80m for this year, as per the sources.

A supplier of medical equipment and solutions to public and hospitals, Palex acquired Italy-based Gala last year.

With over 65 years of experience in the health sector, Palex is a group of companies that carries out operations in Spain, Italy and Portugal.

The company is focused on the development of advanced products for application in medicine and surgery.

It covers various medical specialities, including home care therapy, anaesthesia and critical care, nephrology, neuroscience, ultrasound and pain management.

Palex also provides products for surgical specialities, comprising coloproctology, general and abdominal surgery, gynaecology, orthopaedic surgery and traumatology, as well as paediatric, thoracic and robotic surgeries.