Northern European private equity firm EQT Partners is buying German bandage and plaster cast maker BSN Medical for about €1.8 billion ($2.2 billion) from Montagu Private Equity, the largest acquisition made by a buyout group in Germany this year.

The deal comes less than a month after Sweden-based EQT agreed to sell Danish Cancer diagnostic company Dako to US-based medical device company Agilent Technologies for $2.2 billion.

London-based Montagu had acquired BSN for about €1 billion in 2005, and had to put off two IPO's since the past four years due to the economic instability in Europe.

Hamburg-based BSN, formed through the 2001 joint venture between Smith & Nephew and Beiersdorf AG, makes bandages, casts and orthopaedic braces.

The company also makes medical products that are used in the treatment of venous and lymphatic diseases, including varicose veins, deep vein thrombosis, chronic venous insufficiency, venous ulcers, peripheral edemas, and lymphoedema.

From its production facilities in Germany, France, Colombia, Mexico, New Zealand, Pakistan, South Africa, the US and Venezuela it generated revenues of €665 million ($829 million) in 2011. It employs over 4,000 people.

In the final round of bidding, EQT outbid BC Partners, CVC Capital Partners and French investment firm Wendel SA.

''We view BSN as a highly attractive growth case with strong resilience across the business cycle. While continuing to strengthen the position in key markets and in key product segments, there is tremendous potential in entering new geographic markets, especially in Asia and Latin America,'' said Marcus Brennecke, partner at EQT.

"BSN's global foot-print and large sales force provide an excellent platform for add-on acquisitions,'' he added.

''EQT's experience in improving global companies and its extensive network of highly relevant Industrial Advisors will be of great value to BSN and to us as the management team'', said Dr. Claus-H Wiegel, CEO of BSN.