Morgan Stanley PE-backed stent maker Sahajanand acquires Vascular Concepts

By Joseph Rai

  • 28 May 2020

Sahajanand Medical Technologies Pvt. Ltd has acquired medical devices firm Vascular Concepts Ltd, the stent maker's second acquisition since it had raised fresh capital led by a new investor over two years back.

The acquisition will boost its position in advanced medical technologies and in structural heart tech, said Sahajanand in a statement. It did not disclose financial details of the transaction.

Vascular Concepts, formerly known as Medical Concepts Ltd, was started in 1988.

Swaminathan Jayaraman, CEO, Vascular Concepts, will continue to manage the company post the acquisition. The firm will also retain its brand and independence.

Vascular Concepts Group has two entities, based in India and Thailand. Its products include coronary stents, cardiac closure devices, peripheral stents, and balloon catheters.

Last year Sahajanand had acquired Brazilian firm Zarek Distribuidora De Produtos Hospitalares.

The latest acquisition is the second by Sahajanand after it had raised fresh capital of Rs 230 crore in a funding round led by new investor Morgan Stanley Private Equity Asia for an unspecified minority stake in January 2018.

Prior to this, Sahajanand had raised Rs 170 crore from mid-market private equity firm Samara Capital in December 2016.

Founded in 1998, Sahajanand develops and manufactures cardiac products in India. Its product portfolio includes coronary stents (drug-eluting and bare-metal), renal stents, angioplasty balloon catheters and other cardiac accessories in India and abroad.

The company has a manufacturing facility in Surat and an R&D centre in Ireland's capital Dublin.

Sahajanand had posted net sales of Rs 326.11 crore in the year ended 31 March 2019 as compared with Rs 208.15 in the previous financial year, according to VCCEdge, the data and research platform of Mosaic Digital. Its operating profit had expanded to Rs 72 crore from Rs 55 crore during the period.

Veda Corporate Advisors Pvt. Ltd is said to have advised Sahajanand and Vascular Concepts on this transaction.

Although consolidated industry-wide data on PE and VC investments for the medical devices industry is not readily available, a number of marquee investors have bet on local medical devices companies.

Apax Partners’ acquisition of Healthium Medtech Pvt. Ltd (formerly Sutures India) from TPG and CX Partners is the biggest private equity transaction in the segment. This is followed by Trivitron Healthcare Pvt. Ltd raising a significant amount of funding from Eight Roads Ventures and True North.

In a more recent transaction, PE firm Everstone acquired a stake last year in Translumina, which makes cardiac stents and cardiovascular medical devices.

Other smaller medical devices and med-tech firms that have raised private equity and venture funding include Consure and Cyclops.

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