Advent International invests $ 105 Million in CARE Hospitals

imageMumbai, 2 April 2012 – Advent International, one of the world’s leading global private equity firms, today announced a partnership with the founders of CARE Hospitals (“CARE”). Advent will invest USD 105 million (INR 523 crore) of equity capital in CARE by acquiring shares from some of the existing investors and injecting additional capital into the business. This will help the business consolidate its position in the healthcare sector and capitalize on the growth opportunities. The business will continue to be run by the founders following Advent’s investment.

CARE is a multi-specialty hospital chain, with strength in cardiac care, neurology, nephrology and general medicine. The hospital chain is ranked number 5 by number of beds and by revenue in India and has a significant market position in the state of Andhra Pradesh. CARE has hospitals in Vishakhapatnam, Raipur, Bhubaneshwar, Nagpur, Surat and Pune along with Hyderabad, and is poised for further growth and expansion in Tier II cities. CARE Hospitals was founded in 1997 by senior Doctors and medical professionals and has grown its capabilities and footprint organically as well as with the help of a number of important JV partners. These partners will be part of the team that will continue to develop and grow the business over time.

Dr. B.Soma Raju, founder of CARE Hospitals has said, “Since inception CARE, has been built with a focus on clinical excellence and commitment to ethical practices and quality. From a 100-bed single specialty facility focusing on cardiac care, CARE has become a multi-specialty hospital group comprising 1590 beds across 11 hospitals. Our partnership with Advent provides us with the required resources and support to expand our presence and reiterates our commitment in providing the best in healthcare with compassion, to more people in India.”

Commenting on the partnership, Georg Stratenwerth, Managing Director, Advent India PE Advisors Private Limited, said, “Advent is pleased to join forces with CARE and its founder group, led by Dr. B. Soma Raju and Dr. N. Krishna Reddy. We believe that there is tremendous potential in the Indian healthcare market. Through this union, Advent brings relevant global experience to support CARE’s expansion plans in India. CARE aspires to match the best international benchmarks in healthcare delivery and we are committed to supporting them in this endeavour.”
Dr.Vikram Chhatwal, ex CEO of Reliance Health, has worked with the team extensively on the CARE investment opportunity providing his experience and insights in the hospital sector. He is part of Advent’s Operating Partner and Industry Advisor Programme wherein successful executives in select sectors work with Advent’s deal teams and investee companies to assist founders and management implement best practices and value creation plans.

Dr. Vikram Chhatwal commented that, “The partnership of CARE and Advent creates the potential to build one of the best healthcare groups in India. I feel privileged to assist them in achieving this goal over the coming years.”

About Advent International in India

This deal marks Advent’s third investment in India. Other investments are, CAMS, the leading Indian provider of outsourced transaction processing for mutual funds & insurance, and Element-K, a corporate e-learning business acquired by SkillSoft, a North American portfolio company of Advent.
Advent has been focussed on India for a number of years and opened an office in Mumbai in 2009 to build a local team which can enable its investment process. This team consist of 6 investment advisory professionals and 8 Operating Partners/Advisors who bring with them a wealth of relevant industry experience.

Source: Press Release

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