KKR & Co in Talks to Acquire Healthium Medtech for $1 Bn

According to people familiar with the matter, deliberations are ongoing, and talks could still fall apart or another buyer could emerge.

Private equity firm KKR & Co has been in talks to acquire Indian medical device maker Healthium Medtech.

Reportedly, the private equity firm has been holding talks with Healthium’s owner, Apax Partners, on a potential deal that could be valued at as much as $1 billion, according to the people familiar with the matter.

Healthium Medtech which is the largest manufacturer of surgical needles globally by volume was acquired by Apax Partners in 2018.

Currently, Apax Partners is working with advisers to gauge interest in the business, the mentioned people shared.

Heavyweight Bidding Landscape

The bidding process for Healthium promises to be intense, with several heavyweight contenders vying for the prize.

According to people familiar with the matter, deliberations are ongoing, and talks could still fall apart or another buyer could emerge.

Alongside KKR, other potential bidders include Mankind Pharma, Novo Nordisk, Hillhouse, Blackstone, and EQT. General Atlantic has also emerged as another prospective player eyeing the acquisition.

Interestingly, Apax Partners, the majority shareholder of Healthium Medtech, initially explored the possibility of a public listing for the asset but eventually pivoted towards a sale process, indicating shifting market dynamics.

Meanwhile, the domestic medical devices sector sees activity from players such as Sahajanand Medical Technologies, supported by Morgan Stanley PE, and Lotus Surgicals, backed by Murugappa Group and Premji Invest.

Healthium’s Latest Developments

Founded in 1992, Bengaluru-based Healthium, makes products for surgical, post-surgical, and chronic care applications.

Earlier known as Sutures India, Healthium 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.

Since its inception, the company has received multiple investments from PE funds including InvAscent-led India Life Sciences, CX Partners to TPG Growth. Over time, TPG raised its stake to 73% and held a majority in Sutures.

In August last year, Healthium Medtech introduced a range of TRUMAS sutures meticulously designed to address challenges faced during suturing in minimal access surgeries (MAS).

TRUMAS offers a diverse array of needle and suture combinations, catering comprehensively to the needs of surgeons.

These innovations include anti-reflective needles to alleviate eye fatigue, optimally curved needles for ease of introduction and maneuverability, square body needles for enhanced grip, and well-sized, short-length barb sutures.

Founded in 1976 by Jerome Kohlberg Jr, Henry Kravis and George R Roberts, KKR (Kohlberg Kravis Roberts & Co.) is a global investment firm.

In 2018, KKR acquired a 49.7% stake in the combined entity of Radiant Life Care and Max Healthcare. Moreover, KKR also acquired a controlling stake in JB Chemicals & Pharmaceuticals.