KKR To Acquire Healthium From Apax Funds

Global investment firm KKR announced the signing of definitive agreements under which funds managed by KKR will acquire Healthium Medtech, an Indian medical devices company, from an affiliate of Funds advised by Apax Partners LLP, a global private equity advisory firm. 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.

The startup marks KKR’s latest investment in the healthcare sector in India and Asia Pacific, which includes but is not limited to, JB, a branded formulations pharmaceutical company in India; Max Healthcare hospital networks; Gland Pharma, an Indian pure-play generic injectable pharmaceutical products company; PHC, a provider of medical equipment and clinical healthcare IT systems in Japan; Bushu Pharma, a pure-play contract development and manufacturing company in Japan; and Philippines-based Metro Pacific Hospitals, a private hospital chain.

Founded in India in 1992, Healthium is a medical devices company that develops, manufactures and sells a broad range of surgical products globally. Its caters to a wide spectrum of surgeons’ needs, offering wound closure, arthroscopy, and advanced wound closure products. It strengthened its existing portfolio of wound closure devices and consumables and invested in new franchises such as arthroscopy and advanced wound care through in-house R&D and M&A. During this period, Healthium expanded its presence from 50 countries to more than 90 today.

The Apax Funds acquired Healthium in 2018, allowing the company to transform from a domestic suture player into a global medical devices player. This support helped it bolster its management team with the appointment of Anish Bafna as CEO and Vishal Maheshwari as CFO.

Akshay Tanna, Partner and Head of India Private Equity at KKR, said, “Under the leadership of Anish and his talented management team, Healthium has established itself as a leading homegrown producer of medical devices with a strong track record of delivering quality products and a wide distribution network both in India and globally. We look forward to leveraging our global network and healthcare expertise to accelerate its growth in this fast-growing sector and further scale its global business through organic and inorganic growth strategies.”

Steven Dyson, Partner at Apax, commented, “Thanks to our long experience partnering with medical devices companies, we saw the opportunity to leverage Healthium’s strong existing portfolio to create a global diversified MedTech platform. We are proud to have supported Healthium on its growth journey to become the leading medical technology player in India through investments in innovation, manufacturing capacity, and portfolio expansion. We would like to thank Anish, Vishal and the team, and wish them every success for the future.”

Anish Bafna, CEO of Healthium, said, “Our products are now used in one-in-five surgeries globally and we have nearly doubled the markets we’re present in…As we look to further strengthen and expand our market position, we are delighted to welcome an investor of KKR’s calibre, who brings deep global healthcare expertise and knowledge of the Indian market. We look forward to our next phase of growth with their support, being able to leverage their global platform, as well as strong investment and operational expertise.”

Apax Partners and Healthium were advised by Jefferies LLC as financial advisor and Kirkland & Ellis LLP as legal counsel. KKR was advised by Moelis & Company as financial advisor and Simpson Thacher & Bartlett and AZB & Partners as legal counsel.

The transaction is subject to receipt of certain regulatory approvals and is expected to close in the third quarter of 2024. Financial details were not disclosed.