TPG in talks to sell 20% in Sutures to Carlyle, Advent Int’l

MUMBAI: TPG Growth, the growth-capital fund of US private equity firm TPG, is set to sell a 20% stake in Bengaluru-based surgical equipment maker Sutures India Pvt Ltd in a deal worth $100 million (₹650 crore), according to two people aware of the development.

TPG Growth, which owns 52% in Sutures India, has started initial discussions with a couple of US-based PE funds such as Carlyle and Advent International, one of the two people said on condition of anonymity. Investment bank Goldman Sachs Group Inc is advising TPG on the sale.

Besides TPG, domestic PE Fund CX Partners holds 20% stake while the rest is held by the promoters.

It is not clear whether CX Partners will join TPG for a part exit from Sutures. In this round, Sutures will be valued at around $500 million (₹3,300 crore).

TPG Growth invested in Sutures in 2013 by acquiring a 23% stake from CX Partners and promoters of the firm for ₹145 crore. Over time, TPG raised its stake and now holds a majority in Sutures.

Sutures, which makes surgical and wound-closure products such as natural and synthetic, absorbable and non-absorbable sutures, surgical needles, staples, tapes and bone wax, competes with companies such as Smith and Nephew Plc, Ethicon Inc. and ConvaTec.

Sutures plans to sell shares to the public by end 2018, said the second person, adding that TPG can sell its remaining stake in the IPO for a complete exit.

However, details of the company’s IPO plan could not be ascertained.

CX Partners has been looking for a complete exit from Sutures since last year. Last year, domestic private equity fund Kedaara Capital had emerged as the frontrunner for acquiring the 20% stake in Sutures India from CX Partners. The deal did not fructify. Besides Kedaara, Malaysian sovereign wealth fund Khazanah Nasional Bhd had evinced interest in Sutures India.

CX Partners had acquired a 37% stake in Sutures India for about ₹200 crore in 2012 by buying out the entire stake held by India Life Sciences Fund. CX sold a part of its stake to TPG Capital in February 2015.

Spokespersons for TPG, Carlyle and Goldman Sachs declined to comment. Emails sent to Sutures India, Advent and CX Partners were not answered.

BENGALURUBASED SUTURES EXPORTS PRODUCTS TO 91 COUNTRIES IN EUROPE, SOUTH AMERICA, AFRICA AND ASIA