Mount Kellett Partners to Buy MedPlus Stake

Private equity firm Mount Kellett Capital Management has partnered with two Indian firms to buy a 35% stake in MedPlus Health Services, Reuters reported, citing a story in the Times of India. The deal is valued at 4.1 billion rupees ($91 million). Mount Kellett will invest 3 billion rupees, and is joined in the deal by TVS Capital and Ajay Piramal group’s healthcare fund, Reuters said.

(Reuters) – U.S. private equity firm Mount Kellett Capital Management along with two Indian firms are close to buying 35 percent in pharma retailer MedPlus Health Services for 4.1 billion rupees ($91 million), the Times of India reported on Monday.

Mount Kellett will make its first Indian investment, together with TVS Capital and Ajay Piramal group’s healthcare fund, the newspaper said, quoting two unnamed sources familiar with the matter. It will buy out existing financial investors in MedPlus.

Mount Kellett will put in 3 billion rupees, while TVS and the Piramal fund will bring in the remainder, it said.

Hyderabad-based MedPlus operates a network of more than 800 pharmacies and diagnostic labs and clinics across five states and competes with Apollo Pharmacy and Guardian Lifecare in India’s emerging organised pharma retail sector.

Organised retail chains are estimated to account for 3 percent of India’s 450 billion rupees pharmaceutical retail industry, the paper said.

($1=45.2 rupees)

(Reporting by Prashant Mehra; Editing by Ranjit Gangadharan)