Global investment firm KKR on Monday announced acquiring Bengaluru-based medical devices company Healthium Medtech from an affiliate of funds advised by private equity firm Apax Partners.
According to sources close to the deal, the value of the acquisition is Rs 6,500-7,000 crore (around $839 million).
“The acquisition will be made by a special purpose vehicle owned by KKR-managed funds which will acquire a controlling interest in Healthium group, including Healthium,” KKR said in a joint statement with Healthium and Apax.
The transaction needs regulatory approvals and is expected to close in the third quarter of calendar year 2024. The investment will be made through KKR’s Asian Fund IV.
“Apax Partners and Healthium were advised by Jefferies LLC as financial advisor for the deal, whereas KKR was advised by Moelis and Company,” the joint statement said.
With this investment, Healthium becomes the latest entrant in KKR’s health care portfolio in India, which includes branded formulations company JB, hospital chain Max Healthcare, and generic pharma products company Gland Pharma.
Anish Bafna, chief executive officer, Healthium MedTech, said “as we look to further strengthen and expand our market position, the company is delighted to welcome an investor of KKR’s calibre, who brings deep global healthcare expertise and knowledge of the Indian market”.
Apax had acquired Healthium in 2018, strengthening its existing portfolio of wound-treatment devices and consumables, and investing in new franchises such as arthroscopy and advanced wound care through its own research and development.
Healthium is the fourth-largest surgical suture manufacturer in the world with a market share of about 18 per cent in India.
It is present in more than 90 countries.
Commenting on the deal, Akshay Tanna, KKR partner and head of India private equity. said Healthium had established itself as a leading home-grown producer of medical devices with a track record of delivering quality products and a wide distribution network, both in India and globally.
“KKR will accelerate Healthium’s growth organically and through mergers and acquisitions.” he added.
