KKR Finalizes Acquisition of Healthium Medtech from Apax Partners

Global investment giant KKR announced on Monday its strategic move to acquire Healthium Medtech, a prominent medical device company, from an affiliate of Apax Partners LLP. This significant transaction involves definitive agreements where KKR-managed funds will take over Healthium, highlighting a deal estimated to be valued between Rs 6,500 crore and Rs 7,000 crore. The acquisition is set to be executed through a special purpose vehicle owned by KKR-managed funds, aiming for a controlling stake in the Healthium group.

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Under the proficient leadership of CEO Anish Bafna and his skilled management team, Healthium has risen to become a leading domestic manufacturer of medical devices. The company boasts a robust track record of delivering high-quality products and possesses an extensive distribution network both within India and internationally. "Healthium has established itself as a leading homegrown producer of medical devices," stated Akshay Tanna, Partner and Head of India Private Equity at KKR.

Since its inception in 1992 in India, Healthium Medtech has carved a niche for itself in the global medical devices sector. The company's diverse product portfolio serves a broad spectrum of surgical needs, including wound closure, arthroscopy, and advanced wound closure products. The Apax Funds took ownership of Healthium in 2018 and have since played a pivotal role in the company's rapid growth trajectory.

"Our products are now used in one-in-five surgeries globally," Bafna remarked, emphasizing the company's significant market expansion under Apax's partnership over the last five years. He expressed enthusiasm for the next growth phase with KKR's backing, leveraging their global platform and deep investment and operational expertise.

The completion of this transaction is contingent upon receiving certain regulatory approvals, with an expected closure in the third quarter of 2024. This acquisition underscores KKR's continued interest and investment in the healthcare sector across India and the Asia Pacific region. KKR's portfolio in this sector includes investments in JB Chemicals & Pharmaceuticals Ltd., Max Healthcare, Gland Pharma, and other healthcare entities across Japan and the Philippines.

Healthium Medtech's acquisition by KKR not only marks a significant milestone for the company but also reflects the growing interest and confidence in India's healthcare and medical devices sector from global investment firms. With this strategic move, KKR aims to further strengthen its presence in the healthcare industry, contributing to its overall growth and innovation.