Warburg buys majority stake in ophthalmic device company Appasamy

US personal fairness agency Warburg Pincus has purchased a majority stake in Chennai-based Appasamy Associates, India’s largest maker of ophthalmic tools and intraocular lenses (IOLs). Monetary particulars of the transaction weren’t disclosed. Appasamy operates throughout the whole worth chain of ophthalmic units – diagnostic, surgical tools, and IOLs, in accordance with firm assertion.

ET was the primary to report final July that Warburg Pincus was in superior phases of talks to accumulate Appasamy, having signed an exclusivity settlement, and began due diligence of the corporate.

Promoters of Appasamy had been anticipating a valuation of ₹3,000-₹3,200 crore, ET reported on the time. Warburg deliberate to purchase a 60-70% stake within the firm and the enterprise would proceed to be run by the present administration, ET reported. Put up the deal, Appasamy will proceed to be led by lately appointed CEO, Senthil Kumar who will drive the enterprise going ahead with assist of the promoter household and in partnership with Warburg Pincus, in accordance with the assertion. Appasamy can also be the unique distributor for Canon medical tools in India.

“The promoters and the administration crew have a distinguished historical past of efficiently working companies within the ophthalmic business. Senthil brings nice strengths in constructing and scaling groups and merchandise throughout geographies, and we’re excited to collaborate with him in Appasamy’s subsequent section of development,” stated Narendra Ostawal, head of India personal fairness, Warburg Pincus.

Nuvama Funding Banking acted because the unique monetary advisor to the transaction.

The newest deal follows Warburg Pincus buying about 67% stake in Coimbatore-based bathtub fittings model Watertec India at ₹2,600-₹2,800 crore (about $340 million) valuation in 2023. The PE agency’s different investments within the Indian healthcare sector embrace Meril Life Sciences, MedPlus, Laurus Labs, and Metropolis Healthcare.

Appasamy began operations in 1978 by introducing India’s first low-cost cryo surgical tools for ophthalmology at ₹1,800, in comparison with an equal imported unit costing ₹20,000.

“It’s a matter of nice delight for us to witness the evolution of Appasamy, from being simply an concept of PSN Appasamy, the founder, to changing into a number one participant within the Indian and international ophthalmic house, with outstanding development over the past 40+ years,” stated Arvind Kasthuri, from Appasamy’s promoter household.

The Indian intraocular lens market is dominated by international manufacturers equivalent to Alcon, Bausch Well being, Biotech Healthcare Holding GmbH, Carl Zeiss AG, Hoya Holdings, Johnson & Johnson and French lens maker EssilorLuxottica SA.

Amongst Indian manufacturers, Appasamy is the market chief with about 75% market share.