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KKR is nearing a deal to buy E45 maker Karo Healthcare in a buyout that values the healthcare company at about €2.6bn, said people familiar with the matter.
The US private equity group bested a rival bid from PAI Partners to clinch the company behind over-the-counter medicine such as athlete’s foot treatment Lamisil and moisturiser E45, paying €2.65bn including debt, the people said.
The sale would mark a profitable exit for Karo’s current owner, EQT, which struck a deal to take the business private in 2022 valuing it at about €1.4bn. EQT first became a majority owner of Karo in 2019 when it was still a publicly listed business.
KKR’s acquisition comes during a dry patch for mergers and acquisitions as turmoil unleashed by US President Donald Trump’s tariff policy has put dealmaking on pause. Uncertainty over the speed of interest rate cuts as well as volatility in debt markets had particularly impacted sponsor-backed deals.
Under EQT’s ownership, Stockholm-based Karo has rolled up a number of consumer medicine brands. Karo paid £200mn in 2021 to buy the E45 moisturiser brand from UK consumer goods group Reckitt and in 2023 bought Lamisil from consumer healthcare group Haleon for £235mn.
A deal would likely be announced in the coming days, provided no last-minute issues emerged, the people said. Karo, EQT and PAI declined to comment. KKR did not immediately respond to a request for comment.
Karo, which was founded in 1987, sells more than 100 over-the-counter medicines across 90 countries, including vitamin brand Nutravita, plant-based food brand Alpha Foods and scar treatment Remescar. The company employs roughly 400 workers worldwide.
KKR, with $668bn of assets under management, has invested extensively in healthcare companies. In Europe, it has in recent years invested in UK medical equipment supplier Clinisupplies and Switzerland-based peptides manufacturer Biosynth.
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