The Abraaj Group agrees to acquire a majority stake in CARE Hospitals, a leading healthcare provider in India, from Advent International

  • CARE is India’s fifth-largest healthcare provider
  • The partnership with CARE’s founders and management will focus on providing accessible and affordable care in underserved cities throughout India
  • The transaction marks Abraaj’s 28th investment in healthcare across growth markets

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.

About The Abraaj Group

The Abraaj Group (“Abraaj” or “the Group”) is a leading private equity investor, purpose-built for operating in the growth markets of Africa, Asia, Latin America, the Middle East and Turkey.

Employing over 300 people, Abraaj has over 20 offices spread across five regions with hubs in Dubai, Istanbul, Mexico City, Nairobi and Singapore. The Group currently manages c. US$9 billion across regional, sector and country-specific Funds.

Abraaj has realized c. US$5.4 billion from 80 full and partial exits, and Funds managed by the Group have made over 140 investments across a range of sectors including consumer, energy, financials, healthcare and utilities.The Group is committed to the highest environmental, stakeholder engagement and corporate governance standards and is a signatory to the United Nations-backed Principles for Responsible Investment and the United Nations Global Compact. Abraaj’s founder, Arif Naqvi, was appointed to the United Nations Global Compact Board by UN Secretary-General Ban Ki-moon in 2012 and to the Interpol Foundation Board in 2014.

This publication is issued by Abraaj Capital Limited (“ACLD” or the “Firm”), a member of The Abraaj Group that is authorized and regulated by the Dubai Financial Services Authority (“DFSA”). Several Group members are regulated by a number of international regulatory authorities, including the DFSA under whose rules ACLD has issued this publication.

About CARE HospitalsThe CARE Hospital Group is a multispecialty healthcare provider, with 16 hospitals serving nine cities across seven states in India. The regional leader in tertiary care in South and Central India and among the top five pan-Indian hospital chains, CARE Hospitals delivers comprehensive care in more than 30 specialities in tertiary care settings. The company offers state-of-the-art infrastructure, medical equipment and facilities, complemented by internationally trained and experienced doctors and professional support staff. For more information, visit www.carehospitals.com.
About Advent InternationalFounded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 300 private equity transactions in 42 countries and, as of June 30, 2015, had $33 billion in assets under management. With over 170 investment professionals across North America, Latin America, Europe and Asia, Advent focuses on investments in five core sectors: business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom.

Advent has been investing in India since 2007 and opened a fully staffed office in Mumbai in 2009. In addition to CARE Hospitals, the firm’s investments in India have included Crompton Greaves Consumer Electricals, a manufacturer and marketer of consumer products; and Computer Age Management Services (CAMS), India’s leading provider of business process outsourcing services to the asset management industry. Advent has also supported its global portfolio companies with acquisitions in India, including Skillsoft’s purchase of e-learning business Element K and TransUnion’s acquisition of a controlling stake in credit information company CIBIL. For more information, visit www.adventinternational.com.

 

Media contacts

For more information on Abraaj please contact:

Mitali Atal
Director – Communications
The Abraaj Group
T: + 971 45064588
E: mitali.atal@abraaj.com

Grace Chaoui
Finsbury
T: +971 (0)55 632 9593
E: grace.chaoui@finsbury.com

For more information on Advent International please contact:

Shreela Roy
Ketchum Sampark (India)
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E: shreela.roy@ketchumsampark.com

Louisa Feltes
FTI Consulting (United Kingdom)
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E: adventinternational@fticonsulting.com

Dana Gorman
Abernathy MacGregor Group (New York)
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E: adventinternational@abmac.com

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