KKR, TPG, Alkem Labs Vie for Stent Maker SMT in INR 4000 Cr Deal

SMT, which commands a 31% market share, had previously filed for an initial public offering (IPO) in 2021, aiming to raise INR 1,500 Cr, but the plan was subsequently put on hold.

Leading global private equity firms, including KKR, Apax Partners, and TPG Capital, are reportedly considering the acquisition of Sahajanand Medical Technologies (SMT), India’s largest cardiac stent manufacturer, with a valuation estimated between INR 3,500 to 4,000 Cr.

The promoters, the Kotadia family, currently hold a 45% stake in the company. Morgan Stanley PE Asia and Samara Capital collectively own 49%, while Kotak Pre IPO Opportunities Fund controls the remaining 6%.

Additionally, the Economic Times report said that pharma giant Alkem Laboratories has shown interest in the acquisition.

SMT, which commands a 31% market share, had previously filed for an initial public offering (IPO) in 2021, aiming to raise INR 1,500 Cr, but the plan was subsequently put on hold.

Founded in 1993 by Dhirajlal Kotadia, SMT initially offered laser-based solutions to the diamond industry. Later, the company diversified into medical devices, including stents and other cardiovascular products.

SMT develops and manufactures minimally invasive coronary stent systems. Their product portfolio includes drug-eluting stents (DES), bare-metal stents, renal stents, PTCA balloon catheters, and other cardiac accessories. The company has a presence in more than 800 cath labs and hospitals across the country. It is also expanding its reach in Europe.

Recent Acquisitions in the Healthcare Space

Days back, Fortis Healthcare announced the acquisition of a 31% stake in its diagnostic arm, Agilus Diagnostics, for INR 1,780 Cr, valuing the company at INR 5,700 Cr.

The stake is being sold by private equity (PE) players through the exercise of a put option, marking a significant move in Fortis’s strategy to consolidate its position in the diagnostics sector.

The acquisition involves PE investors, including NYLIM Jacob Ballas India Fund III LLC (NJBIF), International Finance Corporation (IFC), and Resurgence PE Investments Limited (formerly known as Avigo PE Investments Limited).

While in the pharmaceutical sector, recently, Mankind Pharma entered into a definitive agreement to acquire a 100% stake in Bharat Serums and Vaccines (BSV) from private equity firm Advent International for an enterprise value of INR 13,630 Cr. Mankind Pharma's acquisition of BSV is set to enhance its diagnostic capabilities and service offerings.

Last month, Thyrocare Technologies, a leading diagnostics company owned by PharmEasy, acquired Polo Labs' pathology business in a strategic move to bolster its presence in Northern India.

Although the deal value remains undisclosed, this acquisition is expected to significantly enhance Thyrocare's reach and service capabilities in the region. The acquisition sought to integrate Polo Labs' laboratories into Thyrocare's existing network.