US private equity giant KKR & Co. Monday announced an agreement to acquire Bengaluru-based medical device maker Healthium Medtech Ltd from UK-based private equity firm Apax Partners.
The acquisition, slated to be completed in the third quarter of this year, will be facilitated through a special purpose vehicle owned by KKR-managed funds, it said in a joint statement with Healthium and Apax .
KKR's Asian Fund IV will spearhead the investment, although specific financial details have not been disclosed.
This move marks a significant triumph for KKR following an intense bidding war for Healthium, the country's second-largest surgical suture manufacturer. Notable contenders in the bidding process included a consortium of global private equity firms such as EQT (formerly BPEA EQT), Bain Capital, and Advent International, alongside Indian-focused firms like ChrysCapital and Mankind Pharma, as per reports.
The acquisition by KKR comes on the heels of Healthium's unsuccessful attempt to launch a public offering. Additionally, in the financial year 2022-23, Healthium divested its UK-based business, the Clini group, specializing in the urology segment, to KKR.
Formerly known as Sutures India Ltd., Healthium was acquired by Apax Partners from TPG and CX Partners in 2018. According to VCCEdge, the data research platform of VCCircle, the company reported a 11.2% growth in consolidated revenue to Rs 708.5 crore for the fiscal year ending March 2023. The company's consolidated net profit for FY23 surged to Rs 603.25 crore from Rs 79.3 crore in FY22, buoyed by a one-time gain from the sale of its UK business.
The divestment of the Clini Group to KKR yielded proceeds of Rs 762.4 crore (post debt repayment of Clini Group) and a gain of Rs 490.3 crore for Healthium, VCCircle earlier reported.
Jefferies LLC served as the financial adviser to Apax Partners and Healthium, with Kirkland & Ellis LLP providing legal counsel. Moelis & Co. acted as the financial adviser to KKR, with legal counsel provided by Simpson Thacher & Bartlett and AZB & Partners.
Established in India in 1992, Healthium is a medical devices company specializing in the development, manufacturing, and global distribution of a diverse range of surgical products. Its product portfolio caters to various surgical specialties, offering solutions for wound closure, arthroscopy, and advanced wound care.
Following Apax Partners' acquisition in 2018, Healthium significantly expanded its global footprint from 50 countries to over 90.