The Financial Times reporting Monday says, Montagu, the private equity house that put German bandage manufacturer BSN Medical up for sale 18-months ago, but was compelled to abandon the auction in the wake of the financial crisis, now plans to make an initial public offering (IPO) of BSN, after hiring Morgan Stanley to plan a flotation that values BSN as high as €2-billion ($2.7-billion).

Strategic buyers like 3M and Kimberly Clarke, including private equity groups like Apax Partners and Bain Capital had shown strong interest in BSN, and if they bid, most likely Montagu will decide to sell BSN rather than float the company.

Cardinal Health and Medline in the United States, including Sweden’s Molnlycke Health Care have also evinced interest.

Smith & Nephew and Beiersdorf created the Hamburg-based BSN in 2001 as a joint venture and which was bought by Montagu for 1.03 billion euros in 2005.

The recent tremors in equity markets has is already caused trouble for other private equity-backed flotations. Just last week, CVC Capital Partners was forced to pull Taminco, the Belgian chemicals group’s €420-million IPO.

Contrastingly, rebounding debt markets are seeing buy-out groups, after sitting out for two years due to the financial crisis, rediscover their appetite for deals, as hungry to invest they see IPO candidates as prime targets.

The most attractive sector for private equity is healthcare, as ageing population and improved technology means it may remain relatively immune to any economic downturn.

Ambea, the Nordic nursing homes operator may interest buy-out groups, as 3i, its UK private equity owner is also preparing to sell or float it.

Care UK, the nursing home and foster care group is another deal that may be unveiled, as it is in talks with Bridgepoint for about £275-million ($431-million).