KKR Acquires Healthium Medtech for INR 7000 Cr

The formal announcement is expected imminently, heralding KKR's entry into the medical technology.

In a significant development within the healthcare industry, KKR, a global investment firm, has acquired Healthium Medtech (formerly Sutures India) from Apax Partners, its current private equity owners. 

The acquisition, valued at INR 7000 Cr ($840 million), signifies a substantial investment in the burgeoning medical technology sector.

The acquisition process witnessed fierce competition, with KKR prevailing over other formidable contenders. Notably, a consortium comprising Mankind Pharma, ChrysCapital, and Novo Holdings, the controlling shareholders of Danish pharmaceutical giant Novo Nordisk, posed significant competition.

The Strategic Investment Deal

Despite the intense bidding war, KKR's compelling offer secured the deal, marking its strategic foray into healthcare.

According to sources familiar with the agreement, KKR and Apax Partners have signed the binding agreement to acquire Bengaluru-based Healthium Medtech. The formal announcement is expected imminently, heralding KKR's entry into the medical technology.

Healthium Medtech, renowned as the largest manufacturer of surgical needles globally by volume, presents a lucrative investment opportunity for KKR. 

Talking on the matter, Anish Bafna, CEO & MD, Healthium Medtech, said, "The acquisition by KKR marks an exciting new chapter for Healthium Medtech. We look forward to leveraging KKR's expertise and resources to further our growth and innovation in the medical technology sector."

Industry analysts anticipate a positive trajectory for Healthium Medtech, with a projected revenue of INR 1,020 Cr in the current fiscal year.

In fiscal year 2024, Healthium Medtech recorded revenue of INR 820 Cr and EBITDA of INR 256 Cr. The transaction, valued at 20 times the current EBITDA multiple, underscores confidence in Healthium Medtech's growth potential.

Global Presence & Market Position

Furthermore, Healthium Medtech's robust presence in the global surgical sutures market, spanning advanced surgery, arthroscopy, urology, wound care, and consumables, positions it as a critical player in the industry.

Additionally, its expansive reach across 90 countries and intense domestic and international market penetration augurs well for future growth prospects.

The acquisition follows Healthium Medtech's strategic divestment in 2022, where it sold its UK-based subsidiary to KKR for an undisclosed amount. Additionally, it divested Watford-based Clinisupplies to KKR Health Care Strategic Growth Fund II.

Established in 1992 by LG Chandrasekhar and S Subramanium, Healthium makes products for surgical, post-surgical, and chronic care applications. 

It focuses on four primary product areas—wound closure, arthroscopy, wound care, and infection prevention—the company's reach extends to over 40,000 surgeons across 18,000 hospitals, covering 90% of all districts in India.