KKR to acquire Karo Healthcare from EQT

Date Announced: 09/04/25

Target Advisors: Morgan Stanley

Acquirer Advisors: Citigroup

On April 9th, 2025, KKR, an American global private-equity company, announced that it had entered into a definitive agreement with EQT, a Swedish global investment organisation to acquire Karo Healthcare, a Swedish consumer healthcare company from its portfolio. Whilst the exact terms of the agreement are unknown, the acquisition is thought to have cost KKR approximately USD 2.8bn, presumably all-cash. The deal is expected to close in 2025.

Company Details (Acquirer – KKR)

KKR & Co. Inc. is a leading global investment firm offering alternative asset management, capital markets, and insurance solutions. With over USD 600bn in assets under management, KKR has a diverse portfolio, including investments in consumer health sectors. Notable holdings include stakes in Flora Food Group and Wella. ​

Company Details (Target – Karo Healthcare)

Karo Healthcare, headquartered in Stockholm, Sweden, is a prominent pan-European consumer healthcare company. The company offers a diversified portfolio of trusted brands across categories such as Skin Health, Foot Health, Intimate Health, Digestive Health, and Vitamins, Minerals & Supplements. Its products are available in over 90 countries, featuring well-known brands like E45, Lamisil, and Nutravita. ​

Deal Details and Rationale

KKR’s acquisition of Karo Healthcare from EQT marks a strategic move into the resilient European consumer health sector, a space increasingly attractive to private equity due to its cash-generative, recession-resistant profile. While financial specifics remain undisclosed, the valuation suggests a rich EBITDA multiple likely north of 14x, assuming a normalized EBITDA range of €170–180 million based on industry benchmarking and EQT’s recent portfolio disclosures.

This deal follows EQT’s successful five-year transformation of Karo from a niche Nordic pharma player into a pan-European OTC platform. Through over 15 bolt-on acquisitions, including E45 from Reckitt (2022) and the Lamisil brand from Haleon Holdings (2023), EQT deployed a buy-and-build strategy that expanded Karo’s presence across more than 90 countries and diversified its portfolio across dermatology, foot care and digestive health. With top-line growth in the high single digits and expanding gross margins, the timing of the sale appears tactical, capitalising on private market valuations before potential macro tightening.

For KKR, this is a bet on the long-term growth of over-the-counter (OTC) healthcare, driven by self-care trends, aging populations and constrained public health systems. Karo offers brand-driven cash flows and potential for geographic expansion. KKR’s past experience in consumer health, notably its USD 2.5 bn acquisition of OTC haircare brand Wella from Coty in 2020, demonstrates the tried and tested PE playbook: acquire brand equity at scale, drive operational improvement and exit at a premium once scale and margin levers have been pulled.

Despite its appeal, the deal is not without risk. Karo’s growth has been heavily acquisition-driven and integrating multiple brands across diverse markets brings complexity. Consumer health margins, while resilient, are sensitive to supply chain shocks and retailer pushbacks. Moreover, with a potential purchase price north of USD 2.8bn, KKR may face scrutiny over valuation if top-line momentum stalls or synergies prove slower to realise.

Ultimately, KKR’s thesis behind this acquisition is a compelling one. If KKR can execute on cost efficiencies and continue growth via selective M&A, Karo could prove to be a flagship healthcare asset in its portfolio, setting up a lucrative exit in the next three to five years, possibly via IPO or strategic sale.

Written by: Karl Dumasia

Sources: Mergerlinks, EQT, Karo Healthcare