Abraaj Group, a Dubai-based private equity investor, said on Wednesday it plans to buy a majority stake in Quality CARE India Ltd, which runs CARE Hospitals, from global PE firm Advent International, marking the emerging markets-focused firm's latest investment in India.
CARE, which operates a multi-specialty chain of hospitals, plans to expand in "underpenetrated" regions of India, as well as enter other markets where Abraaj operates, the Dubai firm said in a statement.
Abraaj tied up with India's Aditya Birla Group in October to invest jointly in building and operating new solar power plants in the country.
Founded in 1997 by Dr B. Soma Raju and a core group of professionals, CARE has treated more than 6 million outpatients and over 1 million inpatients, according to a joint press release.
Headquartered in Hyderabad, CARE is the fifth largest healthcare provider in India, operating 2,600 beds across 16 hospitals in nine cities.
Abraaj and CARE’s management team will focus on expanding CARE’s integrated healthcare delivery system.
"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," said Sev Vettivetpillai, Partner and Global Head of Abraaj’s Thematic Funds Business.
CARE founder Raju said: "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, said her group's partnership with CARE over the past four years has helped the company solidify its position as one of India’s leading multispecialty hospital groups.
The transaction is expected to conclude in the first quarter of 2016.
