Bidding for Healthium is likely to be competitive with several others such as KKR, Novo Nordisk, Hillhouse, Blackstone and EQT said to be also evaluating a purchase of the company, according to sources close to the developments.
Apax expects a $1 billion valuation for the company. Final bids could be due in five weeks if due diligence proceeds as expected.
Mankind Pharma and ChrysCapital had not responded to ET’s queries until press time. Apax Partners declined to comment. ET had first reported about Apax putting up Healthium for sale in its January 11 edition. “This is a global hospital supplies business. It is a relevant diversification for a pharmaceutical company,” a person aware of reasons behind Mankind Pharma’s decision to evaluate this acquisition opportunity said on condition of anonymity.
Healthium’s mainstay products are surgical sutures and staples, both of which are core supplies required for conducting surgeries and used for keeping wounds from opening up.
ChrysCapital has a long-term relationship with Mankind’s promoters, the Juneja family, since at least 2007. ChrysCapital had invested $24 million in 2007 for a 11% stake in Mankind Pharma which was sold to Capital International in 2015 for $200 million.ChrysCapital made a comeback in 2018, heading the consortium that included Singapore’s Government Investment Corporation and Canada’s CPP Investments, by purchasing a 10% stake for about $350 million, valuing the company at $3.5 billion.Since 2018, ChrysCapital has made a total investment worth ₹2,210 crore in Mankind Pharma. The PE fund made an exit worth ₹7,510 crore with an IRR of 24%, said sources.
Started in 1995 by brothers Ramesh and Rajeev Juneja, Mankind is the fourth largest pharma company in India in terms of domestic sales. The company, which has FY23 topline of ₹8,749 crore, gained 97% of its revenue from the domestic market. Healthium (formerly Sutures India) is the fourth largest surgical suture manufacturer in the world and the second largest in the country with a market share of about 18%. Ethicon, Arthrex, and Covidien Holding are some of the global players in this surgical sutures market.
In 2018, Quinag Acquisition (FDI), a company backed by funds advised by Apax Partners, acquired the Healthium stake from PE funds TPG Growth, CX Partners, and founding shareholders, for about ₹1,950 crore ($300 million). Apax Partners holds about 99.8% stake in Healthium.
