The Carlyle Group said Wednesday that it has bought a stake in Metropolis Healthcare Ltd. Dr. GSK Velu and his affiliates are the sellers. Financial terms were not announced. Metropolis Healthcare is a chain of pathology laboratories with locations in India, Sri Lanka, United Arab Emirates, South Africa, Kenya, Mauritius and Ghana.
Mumbai, India – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that an affiliate of Carlyle Asia Partners IV has bought a stake in Metropolis Healthcare Limited, a multinational chain of pathology laboratories. Carlyle is acquiring the stake held by Dr. GSK Velu and his affiliates. Financial details were not disclosed.
Promoted and led by Managing Director and CEO Ameera Shah, Metropolis Healthcare Limited is a chain of pathology laboratories with presence in India, Sri Lanka, United Arab Emirates, South Africa, Kenya, Mauritius and Ghana, and has a network of 130 laboratories with more than 1,000 collection centers in India.
Neeraj Bharadwaj, Managing Director of the Carlyle Asia buyout team, said, “With an experienced management team, a wide range of test menu and a focus on superior quality and clinical output, Metropolis has developed a strong brand name and established a broad retail franchise in India. We are delighted to partner with Metropolis and back its promoter as well as its management team, and will leverage our healthcare industry expertise to support the company’s growth plans.”
Dr. Sushil Shah, Chairman of Metropolis Healthcare Limited, said, “I have seen Dr. Sushil Shah’s Laboratory transform into Metropolis Healthcare, a multinational chain of pathology centers, over the past 15 years and I thank all the investors and partners who have believed in our vision. We have created immense value for the selling shareholder and previous investors and are eager to work with The Carlyle Group to build on this track record of success”.
Promoter, MD & CEO Ms. Ameera Shah, said, “Metropolis today is better positioned than ever before with a transformed shareholding structure and a new set of board members. With an aligned vision, we are all set to lead the markets that we are operating in. The past six months has truly been a turning point for the organisation with the acquisition of Warburg Pincus’ stake and now facilitating the sale of Dr. Velu’s shares to The Carlyle Group. This is not only a defining moment but an all-new chapter for Metropolis and I am excited to lead this along with the support of 3,700 Metropolitans.”
Commenting on the development, Dr. GSK Velu, the ex-promoter and selling shareholder, said, “It has been a long and fulfilling association with Metropolis. I wish Metropolis all the best in its new growth journey with Carlyle as the new investor.”
Carlyle has extensive experience in the healthcare sector in Asia with investments in Healthscope in Australia, Meinian Onehealth and Concord Medical in China, as well as Global Health in India. Carlyle sees high growth potential in the healthcare sector in Asia as the rising middle class continues to drive demand for better healthcare products and services.
The Carlyle Group has invested $1.3 billion of equity in more than 30 transactions in India as of June 30, 2015.
Avendus Capital and Veda Corporate Advisors served as financial advisors, E&Y served as commercial advisor and Ropes & Gray, Luthra and Luthra, Khaitan & Co and Shardul Amarchand Mangaldas & Co served as legal advisors to the transaction.
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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $193 billion of assets under management across 128 funds and 159 fund of funds vehicles as of June 30, 2015. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,700 people in 35 offices across six continents.
About Metropolis Healthcare Limited
Metropolis was founded by Dr. Sushil Shah in 1981, who serves as Chairman of the company. Metropolis has amongst the largest service menus in India offering more than 4,500 varieties of tests. Processing 15 million tests a year, Metropolis caters to more than 10,000 laboratories, hospitals and nursing homes, as well as 200,000 doctors. Metropolis is accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and the College of American Pathologists (CAP), the gold standard in laboratory accreditation. With 34 years of experience in delivering accurate reports, Metropolis has earned the reputation of being India’s most respected and only multinational chain of diagnostic centers. In the last 10 years, Metropolis has expanded into new service lines like Clinical Trials, Hospital Lab Management, Home Health Services, Preventive Health Check-ups and Corporate & Wellness Solutions. In addition to the board of directors, Metropolis is also supported by reputed independent directors Mihir Doshi and Shailesh Haribhakti.