Apax Partners will sell India's Healthium Medtech to KKR

Apax Partners will sell India's Healthium Medtech to KKR

By selecting Anish Bafna as CEO and Vishal Maheshwari as CFO, the firm strengthened its management team and added substantial industry knowledge with the backing of Apax Funds, setting Healthium up for success.

The major international investment firm KKR stated on May 6 that it has signed final agreements to buy Healthium Medtech Ltd., a prominent Indian manufacturer of medical equipment, from a fund affiliate supervised by renowned global private equity consulting firm Apax Partners LLP.

The news that KKR had emerged as the front-runner to purchase Healthium Medtech in a transaction that could value the company up to $850 million was originally reported by Moneycontrol on May 4.

The purchase of a controlling stake in the Healthium group, which includes Healthium, will be carried out via a special purpose entity controlled by funds managed by KKR.

Healthium is a medical device firm that was established in India in 1992 that develops, produces, and markets a wide variety of surgical products worldwide. Its extensive, superior portfolio offers enhanced wound closure, arthroscopy, and solutions to meet the demands of a broad range of surgeons.

After acquiring Healthium in 2018, Apax Funds turned the local suture player into a leader in medical devices worldwide. By appointing Anish Bafna as CEO and Vishal Maheshwari as CFO, the firm strengthened its executive team and added extensive industry expertise, all with the backing of Apax Funds, setting Healthium up for expansion.

Through internal R&D and M&A, Healthium expanded its range of products to include wound closure devices and consumables and made investments in new businesses, including arthroscopy and advanced wound care. Healthium increased its footprint from 50 to over 90 nations during this time.

"Healthium has established itself as a major domestic manufacturer of medical devices with a great track record of providing high-quality products and a broad distribution network both in India and internationally under the leadership of Anish and his brilliant management team. Partner and head of KKR's India Private Equity Akshay Tanna stated, "We look forward to harnessing our global network and healthcare expertise to help accelerate its growth in this fast-growing sector while helping to scale its global business through both natural and artificial growth strategies."

Apax, according to partner Steven Dyson, saw a chance to build a globally diversified MedTech platform by using Healthium's robust current portfolio. "We are pleased to have contributed to Healthium's development as India's top medical technology company by helping it with investments in R&D, production capacity, and portfolio diversification. We extend our gratitude to Anish, Vishal, and the team and wish them continued success.

Healthium's CEO, Anish Bafna, said that the company has doubled its market share and dramatically accelerated its growth over the last five years, with its products being utilized in one out of every five surgeries worldwide. "We are excited to welcome an investor of KKR's caliber, who has substantial global healthcare experience and understanding of the Indian business, as we strive to further enhance and grow our market position. With their assistance, we are excited to enter our next stage of expansion and take advantage of their extensive worldwide network, robust investment capabilities, and operational know-how.

KKR uses its Asian Fund IV to make investments. The latest investment made by KKR in the healthcare industry in India and Asia Pacific is called Healthium. Other companies in this space include JB, a prominent pharmaceutical company in India that specializes in branded formulations; Max Healthcare, one of the largest hospital networks in India; Gland Pharma, a prominent Indian pure-play company that manufactures generic injectable pharmaceutical products; PHC, a leading supplier of clinical healthcare IT systems and medical equipment in Japan; Bushu Pharma, a leading pure-play contract creation as well as production company in Japan; and Metro Pacific Hospitals, the biggest private hospital chain in the Philippines.

The deal is anticipated to conclude in the third quarter of 2024, pending the acquisition of a few regulatory clearances. No financial information was provided.

Jefferies LLC provided financial advice to Apax Partners and Healthium, while Kirkland & Ellis LLP provided legal guidance. Moelis & Company provided financial advice to KKR, while Simpson Thacher & Bartlett and AZB & Partners provided legal guidance.