Apax Partners inks deal to acquire TPG-controlled Healthium MedTech

Buyout firm Apax Partners said on Friday an affiliate has entered into a definitive agreement to acquire a controlling stake in Healthium MedTech Pvt. Ltd.

The controlling stake was acquired from existing shareholders including TPG Growth, CX Partners and founding shareholders. The transaction is subject to customary approvals, it said in a statement.

Apax did not disclose financial terms of the transaction. VCCircle first reported earlier this week that Apax was buying Healthuim, previously known as Sutures India, in a deal pegged at a little less than Rs 2,000 crore.

Shashank Singh, partner at Apax, said in the statement that healthcare is a key focus area for the PE firm in India given the secular tailwinds around healthcare spending and government initiatives focussed on affordable and universal healthcare.

“Healthium, with its strong IP (intellectual property) and domestic manufacturing base, is well positioned to improve healthcare access and drive excellence in local manufacturing under the Make in India programme,” he said.

The acquisition was made via Quinag Acquisition (FDI) Ltd, a company backed by funds advised by Apax Partners or colloquially known as the Apax Funds.

Healthium will be the eighth investment in India for the Apax Funds over the past 11 years. Including this transaction, the Apax Funds have invested just under $2 billion of equity in the country, the statement said.

The investment in Healthium marks the second investment in the healthcare space for the Apax Funds in India, after the investment in Apollo Hospitals a decade ago.

“From the time we invested five years ago, Healthium has always delivered extremely well on that quality-cost equation,” said Matt Hobart, partner at TPG Growth and leader of the fund’s healthcare practice globally.

Founded in 1992, Healthium makes and sells a broad range of medical devices and consumable products including wound closure products, minimally invasive products, arthroscopy consumables and urology products. The company’s key brands include Trusynth, Truglyde, Trubond and Sironix, the statement said.

Healthium sells its products across hospitals, nursing homes, and government hospitals and institutions, and services over 10,000 hospitals across the country. Backed by the Apax Funds, Healthium plans to deepen its presence in the Indian market and broaden its portfolio of specialty medtech products, the statement said.

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