Private equity firm Advent International today said it will pick up an undisclosed stake in Hyderabad-based healthcare chain Care Hospitals for USD 105 million (Rs 534 crore).
The PE firm said it will acquire shares from some of the existing investors and inject additional capital into the business.
However, the business of the healthcare chain will continue to be run by the founders following the investment, Advent International said in a statement.
When contacted, Advent India Director Avinash Mehra said: “We cannot the disclose the exact percentage but it will be a significant stake in the business.”
Commenting on the development, Care Hospitals founder B Soma Raju said: “Our partnership with Advent provides us with the required resources and supports to expand our presence and reiterates our commitment in providing the best in healthcare with compassion to more people in India.”
Care Hospitals is one of the largest multi-specialty hospital chains in South India, with presence in cardiac care, neurology, nephrology and general medicine.
“Through this union, Advent brings relevant global experience to support Care’s expansion plans in India,” Advent India PE Advisors Managing Director Georg Stratenwerth said.
A global private equity firm, Advent International has been investing in the healthcare sector for over 26 years and has invested in more than 30 healthcare companies worldwide.
Care is a multi-specialty hospital chain comprising having 1,600 beds across 12 hospitals located in locations such as Visakhapatnam, Raipur, Bhubaneshwar, Nagpur, Surat and Pune along with Hyderabad.
Source: Indian Express