KKR acquires Bengaluru-based medical devices firm Healthium

Global investment firm KKR and Co. has acquired Bengaluru-based medical devices firm Healthium Medtech Ltd from private equity firm Apax Partners LLP, the company said. 

KKR said it has entered into definitive agreements under which funds that it manages will acquire Healthium from an affiliate of funds advised by private equity advisory firm Apax. 

A special purpose vehicle owned by KKR-managed funds will acquire a controlling interest in Healthium group, including Healthium, a statement said.

This transaction is subject to certain regulatory approvals and is expected to be completed in the third quarter of 2024. 

Financial details of the acquisition were not disclosed.

Founded in India in 1992, Healthium develops, manufactures, and sells a broad range of surgical products globally, catering to a wide spectrum of surgeons’ needs that include wound closure, arthroscopy, and advanced wound closure products.

The company offers focuses on products used in surgical, post-surgical and chronic care. Present in 90 countries, the company says one in five surgeries conducted globally uses a Healthium product.

Apax acquired Healthium in 2018 and transformed the company from a domestic suture player into a global medical devices leader. Healthium also 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. 

With backing from Apax, Healthium added deep industry experience with the appointment of Anish Bafna as CEO and Vishal Maheshwari as CFO.

“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,” Akshay Tanna, partner and head of India private equity at KKR said.

“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,” Tanna said. 

“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,” said Steven Dyson, partner at Apax. “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.”

“Over the last five years, with the support and partnership of Apax, Healthium has tremendously accelerated its growth. Our products are now used in one-in-five surgeries globally and we have nearly doubled the markets we’re present in,” Healthium CEO Anish Bafna said. 

He welcomed KKR as an investor and said the company was looking forward to expand its market position. 

“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,” Bafna added. 

KKR has invested in several healthcare companies in India and Asia Pacific through its Asian Fund IV. Its noteworthy investments include JB, a branded formulations pharmaceutical company in India, Indian hospital network Max Healthcare, and Indian pure-play generic injectable pharmaceutical company Gland Pharma. 

The firm has also invested in two healthcare companies in Japan: a medical equipment and clinical healthcare IT systems company, PHC, and a pure-play contract development and manufacturing company, Bushu Pharma. It has also invested in a private hospital chain in the Philippines, Metro Pacific Hospitals.