Global investment giant KKR on May 6 announced the signing of definitive agreements for acquiring Healthium Medtech Ltd, a leading Indian medical devices company, from an affiliate of funds advised by Apax Partners LLP, a leading global private equity advisory firm.
On May 4, Moneycontrol was the first to report that KKR had emerged as the front-runner to acquire Healthium Medtech in a deal which would value the firm up to $850 million.
The acquisition will be done through a special purpose vehicle owned by KKR-managed funds, which will acquire a controlling interest in Healthium group, including Healthium.
Founded in India in 1992, Healthium is a medical devices company that develops, manufactures and sells a broad range of surgical products globally. Its comprehensive, high-quality portfolio caters to a wide spectrum of surgeons’ needs, offering wound closure, arthroscopy, and advanced wound closure products.
Apax Funds acquired Healthium in 2018 and transformed the company from a domestic suture player into a global medical devices leader. With the support of Apax Funds, the company bolstered its management team to add deep industry experience with the selection of Anish Bafna as CEO and Vishal Maheshwari as CFO, positioning Healthium for growth.
Healthium strengthened its existing portfolio of wound closure devices and consumables and invested in new franchises such as arthroscopy and advanced wound care through in-house R&D and M&A. During this period, Healthium expanded its presence from 50 countries to more than 90 today.
“Under the leadership of Anish and his talented management team, Healthium has established itself as a leading homegrown producer of medical devices with a strong track record of delivering quality products and a wide distribution network both in India and globally. We look forward to leveraging our global network and healthcare expertise to accelerate its growth in this fast-growing sector and further scale its global business through organic and inorganic growth strategies,” Akshay Tanna, partner and head of India Private Equity at KKR, said.
Steven Dyson, partner at Apax, said the company saw the opportunity to leverage Healthium’s strong existing portfolio to create a global diversified MedTech platform. "We are proud to have supported Healthium on its growth journey to become the leading medical technology player in India through investments in innovation, manufacturing capacity, and portfolio expansion. We would like to thank Anish, Vishal and the team, and wish them every success for the future.”
Anish Bafna, chief executive officer of Healthium, said that over the last five years, Healthium has tremendously accelerated its growth with its products now used in one in every five surgeries globally and nearly doubled its presence in markets. "As we look to further strengthen and expand our market position, we are delighted to welcome an investor of KKR’s calibre, who brings deep global healthcare expertise and knowledge of the Indian market. We look forward to our next phase of growth with their support, being able to leverage their global platform, as well as strong investment and operational expertise.”
KKR makes its investment from its Asian Fund IV. Healthium marks KKR’s latest investment in the healthcare sector in India and Asia Pacific, which includes but is not limited to, JB, a leading branded formulations pharmaceutical company in India, Max Healthcare, one of India’s largest hospital networks, Gland Pharma, a leading Indian pure-play generic injectable pharmaceutical products company, PHC, a leading provider of medical equipment and clinical healthcare IT systems in Japan, Bushu Pharma, a leading pure-play contract development and manufacturing company in Japan, and Metro Pacific Hospitals, the largest private hospital chain in the Philippines.
The transaction is subject to receipt of certain regulatory approvals and is expected to close in the third quarter of 2024. Financial details were not disclosed.
Apax Partners and Healthium were advised by Jefferies LLC as financial advisor and Kirkland & Ellis LLP as legal counsel. KKR was advised by Moelis & Company as financial advisor and Simpson Thacher & Bartlett and AZB & Partners as legal counsel.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
