In its second healthcare deal, British buyout investor Apax Partners will acquire India's largest surgical and wound care products maker Healthium MedTech, formerly called Sutures India, for nearly $350 million, or slightly over Rs 20 billion, Apax disclosed on Wednesday.
In 2007, it made its first healthcare investment in Apollo Hospitals Enterprises. This deal marks the London-headquartered private equity (PE) firm’s eighth investment in India. Apax Partners has invested more than $2 billion in India across companies like Apollo Hospitals, IGate, Zensar Technologies, Shriram City Union, and Cholamandalam Finance.
Unlike some of its peers who have struggled to make money in India, Apax has made good returns from India. It has returned over $2.5 billion in exits from India (more than what it has invested) through three full exits and one partial exit. The most notable exit was from IT major IGate. In 2011, it had partnered Igate to buyout Patni and then sold the combined entity to Capgemini for $4 billion in 2015. Apax is led by Shashank Singh in India.
Investments in India account for roughly 12 per cent of the $7.5 billion Apax has deployed globally. India ranks second after the US market. Last year, which marked its 10 years in India, Apax said it plans to invest $1 billion in India over the next four years.
Though a buyout fund, in India it has also done minority deals (wherein a firm picks up a minority stake) and invests $300 million-$400 million per deal. In the last few years, it has stayed away from very large deals. IT services and pharmaceuticals, and Healthium Meditech is a good platform play.