Mumbai-based Sunway Group, a medium-sized pharmaceuticals company, has signed a definitive agreement to acquire medical devices maker Inor Medical Products Ltd.
Inor Medical, which is engaged in the manufacture and sale of orthopaedic implants and instruments, is part of The Bombay Burmah Trading whose parent is Wadia Group that has stakes in companies such as biscuit maker Britannia Industries and budget airline GoAir.
As part of the transaction, Sunway has also agreed to acquire Inor Medical's facility based in Valsad, Gujarat, a statement said. The financial details of the transaction were not disclosed.
Inor Medical was established by ortho surgeon AK Talwalkar over 30 years ago. It makes products for joint, trauma, spine and instrumentation. It has a distribution network across 40 geographies in India and exports to other markets.
Boutique investment bank J R Laddha Financial Services Pvt Ltd acted as the exclusive adviser on the transaction.
Sunway Group was incorporated in 1951, according to its website. It manufactures and markets formulations in the niche market of ophthalmology and ENT.
India imports about 80% of its medical device requirements. In an effort to boost local manufacturing of medical devices and attract investment in the space, the government has been taking steps.
Last year, it proposed to impose a cess on the import of medical devices.
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 from Eight Roads Ventures and True North.
PE firm Everstone acquired a stake last year in Translumina, which makes cardiac stents and cardiovascular medical devices.