US private equity firm KKR & Co. has agreed to acquire Bengaluru-headquartered Healthium Medtech Ltd from UK private equity firm Apax Partners for an undisclosed sum.
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 announced on Monday. The firms did not disclose the deal size.
A person familiar with the deal said the KKR paid around ₹6,500 crore- ₹7,000 crore for Healthium. The investment was made from KKR’s Asian Fund IV.
Last week, Mint first reported that KKR and other firms had bid to acquire the medical devices company, including Novo Nordisk and a consortium of India-focused PE firm ChrysCapital and Mankind Pharma.
Healthium marks KKR’s latest investment in the healthcare sector in India and the Asia-Pacific region, which includes JB Health, Max Healthcare, Gland Pharma, and Japan’s PHC. Its acquisition of Healthium is expected to close in the third quarter of 2024, subject to regulatory approvals.
Founded in India in 1992, Healthium is a medical devices company that develops, manufactures and sells a broad range of surgical products globally. Its portfolio caters to a wide spectrum of surgeons’ needs, offering wound closure, arthroscopy, and advanced wound closure products.
After Apax Partners acquired Healthium in 2018, Healthium strengthened its portfolio of wound closure devices and consumables and invested in new franchises such as arthroscopy and advanced wound care, including through acquisitions.
Healthium also expanded its presence from 50 countries to more than 90, the firm said.
Healthium’s acquisition by KKR comes after the medical devices company’s plans for a public issue failed to take off. In November 2021, the company had secured the approval of the Securities Exchange Board of India for a ₹1,500-crore initial public offering. The validity of the approval expired in 2022, and the company did not refile its papers.
Following that, in financial year 2022-23, Healthium divested its UK business, the Clini group, which specialises in the urology segment, to KKR.
That year, Healthium’s consolidated revenue (excluding the discontinued UK business) grew 14.3% to ₹728.5 crore, supported by strong demand from both domestic and export markets, according to a 31 January report by ratings agency Icra Ltd.
In the latest sale to KKR, Apax Partners and Healthium were advised by Jefferies LLC as the financial adviser, and Kirkland & Ellis LLP as the legal counsel.
KKR was advised by Moelis & Co. as the financial adviser and Simpson Thacher & Bartlett and AZB & Partners as legal counsel, the firms said.