The Abraaj Group has agreed to buy a majority stake in Quality CARE India Limited. Advent International was the seller. Financial terms weren’t announced. CARE, of Hyderabad, is a healthcare provider in India operating 2,600 beds across 16 hospitals in nine cities.
Dubai, United Arab Emirates, 13 January 2016: The Abraaj Group (‘Abraaj’ or the ‘Group’), a leading investor operating in global growth markets, today announced that it has agreed to acquire, through one of its Funds, a majority stake in Quality CARE India Limited (‘CARE’ or ‘the Company’), one of the largest multi-specialty healthcare providers in India, from global private equity firm Advent International. Headquartered in the city of Hyderabad, CARE is the fifth largest healthcare provider in India, operating 2,600 beds across 16 hospitals in nine cities.
Founded in 1997 by Dr. B. Soma Raju and a core group of professionals, CARE is today recognized for its focus on high quality tertiary care, including cardiac care and neurosciences. To date, CARE has treated more than 6 million outpatients and over 1 million inpatients, a majority of which are from middle and low income groups in underserved second tier cities in India.
Abraaj and CARE’s management team will focus on expanding CARE’s integrated healthcare delivery system, especially in the underpenetrated regions of India. The partnership will also bring CARE’s high quality and proven delivery platform to other markets where Abraaj operates. The CARE Foundation, the Company’s education, training and rural community outreach program, will also be scaled up and expanded to develop and train high caliber nurses, technicians, physiotherapists and community health workers.
Commenting on the partnership, Sev Vettivetpillai, Partner and Global Head of Abraaj’s Thematic Funds Business, said: “The implications of the healthcare gap in India are profound, but they translate into a long-term opportunity for Abraaj to help build a better and more sustainable healthcare infrastructure in the country. Led by dedicated founders and a strong management team, CARE has been a pioneer in providing quality healthcare to middle and low income patients in India, and has the potential for further expansion domestically and internationally. We are excited to partner with one of India’s leading healthcare providers and contribute to developing more robust health systems in growth markets.”
Khawar Mann, Managing Director and Head of Healthcare at The Abraaj Group, added: “CARE is a leader in providing high quality and affordable healthcare, with ethical practices at the core of its value system and operating philosophy. Our healthcare operations team looks forward to working with Dr. Soma Raju, the core group of doctors, and the CARE management team to accelerate the deployment of CARE’s healthcare solutions to underserved communities.”
Dr. B. Soma Raju, Founder of CARE, said: “Access to healthcare is a fundamental right of every individual, and we are delighted that CARE and Abraaj share this common vision. We are confident that Abraaj with its track record, healthcare expertise and strong relationships with leading strategic partners and development finance institutions, will enhance our service offerings. These relationships will play a key role in enhancing public-private partnerships that are essential to the development of sustainable healthcare systems in India.”
Shweta Jalan, Managing Director at Advent International in Mumbai, added, “Our partnership with CARE over the past four years has helped the Company solidify its position as one of India’s leading multispecialty hospital groups. By increasing bed capacity, broadening its clinical offerings and expanding its platform through new hospital construction and acquisitions, CARE has achieved strong, sustainable growth, while improving access to quality healthcare. We believe the company, together with its new partner Abraaj, is well positioned for its next phase of expansion.”
The Abraaj Group has a strong track record of investing in healthcare, having deployed nearly US$1 billion globally in 27 investments across the healthcare spectrum in growth markets.
The transaction is subject to customary closing conditions and is expected to conclude in the first quarter of 2016.