US-based KKR to acquire Bengaluru-based Healthium Medtech from Apax for Rs 7,000 crore

US-based global investment giant KKR has signed the 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.

While the firm didn't disclose the financial details of the deal, an ET report said KKR has valued the Indian company at Rs 7,000 crore, inclusive of debt.

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, according to the firm's statement.

Acquisition details

According to media reports, Apax Partners currently owns 99.8% of Healthium, with Anish Bafna, CEO and Managing Director, owning the remaining 0.2%. Bafna will continue to lead the company under KKR.

Healthium Medtech, the largest manufacturer of surgical needles globally by volume, is the fourth-largest surgical suture manufacturer in the world, holding an 18% market share in India.

In FY24, Healthium generated Rs 820 crore in revenue and Rs 256 crore in EBITDA. The company expects to reach Rs 1,020 crore in revenue this year, with EBITDA projected at around Rs 350 crore.

Healthium's expansion and acquisition

In 2022, Healthium Medtech sold its UK-based subsidiary Clinisupplies to KKR Health Care Strategic Growth Fund II. Apax Partners initiated a formal sale process earlier this year, mandating investment bank Jefferies to lead the deal.

The company was reportedly valued at Rs 6,500-7,000 crore ($850 million).

Over the years, Healthium has raised funding from several private equity investors, including InvAscent-led India Life Sciences, CX Partners, TPG Growth, and Apax Partners.

Healthium Medtech offerings

Healthium Medtech has five core product areas: advanced surgery, arthroscopy, urology, wound care, and consumables.

The company claims that its products have reached over 40,000 surgeons across 18,000 hospitals, covering 90% of all districts in India. Notably, The company exports its products to over 90 countries, including Europe, South America, Africa, and Asia.

Exports account for 45% of Healthium's FY2023 revenues, while the domestic market contributes 55% of total sales. Healthium acquired Sri Gopal Krishna Labs' gelatin sponge business in August 2021 and CareNow Medical Private Limited later that year.

These acquisitions strengthened Healthium's position in advanced wound management and infection prevention products.

The growing Indian surgical sutures market

The domestic surgical sutures market is expected to grow at a CAGR of over 13% to reach $380 million by 2030. According to a report by GlobalData, India currently accounts for 18% of the Asia-Pacific surgical sutures market.