Mumbai: Home-grown private equity fund The Everstone Group will acquire a controlling stake in Sahyadri Hospitals Limited, the largest hospital chain in Maharashtra. The combination of primary and secondary capital outlay is expected to increase the bed-count significantly in next five years, Everstone said in a statement. ET reported on the deal in February.
Home grown private equity fund Everstone Capital is in discussions to acquire a majority stake in Sahyadri Hospitals Ltd, ET reported on 21 February. Everstone is in negotiation with the existing investor Global Infrastructure Partners to buy 51% stake in Sahyadri, it added.
The deal size has not been disclosed yet. According to people in the know, the deal values Sahyadri at about Rs 1000 crore.
IDFC Alternatives had acquired 40% stake in SHL from India Advantage Fund - managed by ICICI Venture in 2012 and another 11% from promoters, in a deal valuing ? 190 crore for the 51% stake. In April 2018, IDFC Alternatives Ltd had sold its infrastructure asset management business to US-based private equity firm Global Infrastructure Partners (GIP).
Founded in 1994, Pune headquartered Sahyadri Hospitals currently operates 5 tertiary care and 3 secondary care hospitals with 750 beds across Pune (Deccan Gymkhana, Nagar Road, Kothrud, Bibwewadi, Kasba Peth and Hadapsar), Nashik and Karad areas. Sahyadri has more than 1000 clinicians along with 2300 supporting staff providing latest medical services.
The promoters include Dr Charudutt Apte, Sadanand Bapat and Nitin Desai.
Everstone will leverage its’ significant healthcare expertise and experience to grow the overall business. We look forward to working closely with our partners and stakeholders,” said Sameer Sain, CEO, Everstone Group.
In 2015, Everstone had exited multi-specialty tertiary hospital chain Global Hospitals. Everstone sold their minority stake to Malaysia's Parkway Hospital which had acquired 74 per cent stakes in Global Hospitals for an equity value of Rs 1,800 crore.
Everstone, along with PD HInduja Hospitals, was one of the contenders to acquire Hyderabad-based CARE Hospitals from PE firm Advent International.
According to industry estimates, private secondary and tertiary healthcare delivery in India is expected to grow from $42 billion in 2018 to $65 billion by 2022 at a CAGR of 12%.
Everstone’s healthcare portfolio includes controlling stakes in domestic pharma distribution platform, Ascent Health; South
East Asia based diagnostic device platform Everlife and an investment in one of the largest nutraceutical ingredient business, OmniActive.
Everstone recently announced its successful exit from Rubicon Research (Rubicon) generating returns of 4.5x.