India: Apax Partners acquires TPG Growth-backed Healthium MedTech for $350m

Photo by Daniel Frank on Unsplash

Apax Partners Llp has acquired Bengaluru-based medical devices company Healthium MedTech Pvt. Ltd (formerly known as Sutures India).

The London-based private equity (PE) fund has acquired close to 100% stake from existing shareholders, including TPG Growth, CX Partners, and founding shareholders. Though the size of the deal was not disclosed, the transaction is in range of $350 million, said a person aware of the development. TPG Growth owns around 73% in Healthium, while private equity fund CX Partners holds 12%. The rest is held by the promoters.

Mint reported in November that several PE funds, including Bain Capital Lp, Advent International Corp. and Carlyle Group are in a race to acquire surgical equipment maker Sutures India in a deal worth about $425 million.

Healthium, which makes surgical and wound-closure products such as natural and synthetic, absorbable and non-absorbable sutures, surgical needles, staples, tapes and bone wax, competes with firms such as Smith and Nephew Plc, Ethicon Inc. and ConvaTec.

TPG Growth invested in Sutures in 2013 by acquiring a 23% stake from CX Partners and the firm’s promoters for Rs145 crore. Over time, TPG raised its stake and now holds a majority in Sutures.

CX Partners had acquired a 37% stake in Sutures for about Rs200 crore in 2012 by buying out the entire stake held by India Life Sciences Fund.

Founded in 1992, Sutures exports products to 91 countries in Europe, South America, Africa and Asia. It also supplies to over 10,000 hospitals across India.

Backed by Apax, Healthium plans to further deepen its presence in the Indian market and broaden its portfolio of specialty medtech products, said the company statement.

“Healthcare is a key focus area for Apax in India, given secular tailwinds around healthcare spend and government initiatives focused on affordable and universal healthcare,” said Shashank Singh, partner at Apax Partners and head of Apax’s India office. The opportunity is to create a medtech platform of scale to deliver a broad portfolio of products in the Indian market, and we are excited to partner with the management team of Healthium to deliver this vision,” he added.

The investment in Healthium marks the second investment in the healthcare space by Apax in India, following the investment in Apollo Hospitals. Healthium will be the eighth investment in India for Apax over the past 11 years. Including this transaction, Apax has invested around $2 billion of equity in the country.

“TPG Growth has invested in a significant number of healthcare provider businesses around the world. Thematically, we have always been focused on investing behind companies that offer high-quality products and services with a focus on value,” said Matt Hobart, Partner at TPG Growth and leader of the fund’s healthcare practice globally.

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This article was first published on livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.