Major global private equity firms, including KKR, Apax Partners, and TPG Capital, are reportedly in pursuit of acquiring Sahajanand Medical Technologies (SMT), India’s leading cardiac stent manufacturer. The potential deal is valued between Rs 3,500 crore and Rs 4,000 crore, according to recent reports from the Economic Times.
Ownership and Current Status
The Kotadia family, the original promoters, currently owns a 45% stake in SMT. Morgan Stanley Private Equity Asia and Samara Capital collectively hold 49%, while the remaining 6% is owned by Kotak Pre IPO Opportunities Fund. Alkem Laboratories, a prominent player in the pharmaceutical industry, is also competing for the acquisition.
SMT, which commands a 31% market share in the cardiac stent sector, had previously filed for an initial public offering (IPO) in 2021, aiming to raise Rs 1,500 crore. However, the IPO was eventually shelved, leaving the company open to acquisition talks.
Recent Market Activity
The medical devices sector has been notably active with acquisition discussions. Earlier this year, Moneycontrol reported that Healthium Medtech, promoted by Apax Partners, was on the block with bids from firms like EQT (formerly BPEA EQT), KKR, Bain Capital, and Advent International. The valuation for Healthium Medtech was estimated between $750-850 million, with KKR emerging as the leading contender for the acquisition.
Furthermore, in August, it was revealed that KKR is engaged in negotiations with Torrent Pharma to divest its majority stake in JB Chemicals.
Implications and Industry Trends
The intense interest in SMT underscores the growing attractiveness of the medical devices sector, particularly in India, where the market for cardiac care is expanding. The involvement of major private equity firms and pharmaceutical companies highlights the strategic importance of this sector and the competitive landscape for high-value acquisitions.