KKR to Acquire Healthium from Apax Funds
KKR, a global investment firm, will acquire Healthium Medtech from Apax Funds, expanding its healthcare sector investments in India and Asia Pacific. Healthium, a leading Indian medical devices company, has grown under Apax's ownership, with KKR planning to leverage its expertise for further growth. The transaction is subject to regulatory approvals and is expected to close in the third quarter of 2024.
KKR's acquisition of Healthium expands its presence in the healthcare sector in India and Asia Pacific.
Healthium, a leading Indian medical devices company, has experienced significant growth under Apax's ownership.
The transaction reflects KKR's strategic focus on investing in healthcare companies with strong growth potential.
The financial details of the transaction were not disclosed, leaving investors unaware of the deal's valuation.
The transaction is subject to regulatory approvals, which may introduce delays or uncertainties in the closing process.
The announcement of KKR acquiring Healthium from Apax Funds indicates a strategic move in the healthcare sector, signaling confidence in the growth potential of the medical devices market. The acquisition, structured through a special purpose vehicle, suggests a tailored approach to facilitate this deal, which is common in private equity transactions. This deal represents KKR's continued investment in healthcare, indicative of a broader trend where private equity firms are increasingly interested in healthcare assets due to their potential for growth and resilience against economic downturns.
While the exact financial details of the transaction are not disclosed, it is noteworthy that KKR will be making this investment from its Asian Fund IV. KKR's diverse portfolio in healthcare, which includes pharmaceuticals, hospital networks and medical equipment, could provide synergies and bolster Healthium's global presence. Investors should monitor the progress of regulatory approvals which, if obtained, would solidify this acquisition, scheduled for closure in the third quarter of 2024.
Healthium's expansion from 50 to over 90 countries under Apax's guidance reflects a robust international growth strategy, which KKR is likely to further develop. Healthium's claim that one-in-five surgeries globally use their product portrays significant market penetration. This acquisition by KKR may accelerate Healthium's growth through additional investments in innovation and possibly more M&A activities, as indicated in the press release.
For investors, the impact on the stock market could be seen through KKR's performance and the value they extract from such acquisitions. A broader product portfolio and expanded market reach for Healthium could drive revenue growth. However, as with any acquisition, integration risks and the execution of growth strategies will be critical for Healthium's continued success within KKR's portfolio.
For retail investors, KKR's acquisition is a signal to evaluate the medical devices industry and specific growth markets within. The sector is positioned to benefit from global aging populations, increasing healthcare expenditures and a rise in surgical procedures. Healthium's established distribution network and portfolio, covering wound closure to advanced wound care, make it a comprehensive player in this field.
Investors should also consider the competitive landscape and Healthium's ability to maintain its growth trajectory in the face of industry giants. Market expansion strategies and product innovation will be key to competing effectively. For KKR, their operational expertise and global network could be leveraged to optimize Healthium's performance and market share, potentially impacting KKR's share value positively in the long term.
Founded in
The Apax Funds acquired Healthium in 2018 and transformed the company from a domestic suture player into a global medical devices leader. With the support of the Apax Funds, the company bolstered its management team to add deep industry experience with the appointment of Anish Bafna as CEO and Vishal Maheshwari as CFO, positioning Healthium for growth. Healthium 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.
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
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
Anish Bafna, Chief Executive Officer of Healthium, said: “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. On behalf of the whole management team, I would like to thank the Apax team for their expertise, hard work, and dedication. 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.”
KKR makes its investment from its Asian Fund IV. Healthium marks KKR’s latest investment in the healthcare sector in
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.
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.
About Healthium
Healthium is a global medical devices company focused on products used in surgical, post-surgical and chronic care. Fuelled by its vision to provide “Access to precision medtech for every patient, globally," it is present across 90 countries. 1 in 5 surgeries conducted globally uses a Healthium product.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
About Apax
Apax Partners LLP (“Apax”) is a leading global private equity advisory firm. For over 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of more than
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Media Inquiries
For KKR
Wei Jun Ong
+65 6922 5813
WeiJun.Ong@kkr.com
For Apax
Kat Sallerfors
+44 20 7872 6300
Katarina.sallerfors@apax.com
Source: KKR
FAQ
What is the acquisition involving KKR and Healthium?
KKR will acquire Healthium Medtech from Apax Funds, expanding its healthcare sector investments in India and Asia Pacific.
When is the expected closing date of the transaction between KKR and Healthium?
The transaction is expected to close in the third quarter of 2024, subject to regulatory approvals.
Who is the CEO of Healthium?
Anish Bafna is the Chief Executive Officer of Healthium.
