Investment Firm KKR To Acquire Medical Devices Maker Healthium Medtech In RS 7,000 Crore Deal; Reports

Global investment giant KKR has made a substantial move in the Indian healthcare market by acquiring Healthium Medtech, an Indian medical devices manufacturer, from UK-based Apax Partners. The deal, reportedly valued at a whopping Rs 7,000 crore ($838.60 million), signals KKR's continued interest in the lucrative Indian healthcare sector.

According to Reuters sources, the acquisition will see KKR take control of Healthium through a special purpose vehicle owned by KKR-managed funds. While Healthium and Apax have yet to respond to requests for comment from Reuters, KKR has declined to provide any immediate comments on the acquisition.

This move is not KKR's first foray into the Indian healthcare landscape. The investment firm already holds stakes in prominent Indian healthcare entities like JB Chemicals and Pharmaceuticals, Max Healthcare, and Gland Pharma.

Healthium, which Apax acquired in 2018, specializes in manufacturing a wide range of products crucial for surgical, post-surgical, and chronic care procedures. The company's portfolio aligns well with the increasing demand for high-quality medical devices in India's rapidly expanding healthcare market.

KKR's acquisition of Healthium underscores the attractiveness of India's healthcare industry to global investors. With a growing population and rising healthcare awareness, India presents significant opportunities for companies involved in pharmaceuticals, medical devices, and healthcare services.

The transaction further highlights the ongoing trend of consolidation and strategic investments in India's healthcare sector. As the country aims to bolster its healthcare infrastructure and improve access to quality medical services, collaborations between domestic players and international investors are becoming increasingly common.

Healthium Medtech Limited specializes in products crucial for surgical, post-surgical, and chronic care, Healthium has established itself as a key player in the medtech sector with a wide-ranging portfolio encompassing Advanced Surgery, Advanced Wound Care, Arthroscopy, and Infection Prevention segments.

The company's manufacturing facilities are designed in accordance with international clean room and Good Manufacturing Practice (GMP) standards. Moreover, Healthium's adherence to stringent Quality Management Systems (QMS) ensures consistency and efficiency across all its operations.

Healthium has seven high-precision manufacturing facilities equipped with global certifications and approvals from authorities such as the US FDA, CE, ISO, and TGA. Notably, Healthium has earned the distinction of being one of Asia's first companies, and India's very first, to receive the CE certification under the new EU-MDR norms for Class III implants.

The company has over 85 patents (including pending applications) across multiple jurisdictions and 23 stock keeping units unique to it. Since fiscal year 2018, Healthium has introduced 30 new products, including a patented portfolio of arthroscopy solutions.

On the other side of the coin, we have KKR, a global investment powerhouse with a history dating back to 1976, when Henry Kravis and George Roberts, alongside their mentor Jerome Kohlberg, founded the firm with $1,20,000. From its beginnings as a US focused private equity firm, KKR has grown into a global investment firm, investing across various asset classes and geographies to address some of the world's most pressing challenges. The partnership between Henry and George, who are first cousins and the closest of friends, remains at the heart of KKR's ethos.