Leading private equity player Everstone Group said on Sunday that it has signed an agreement to acquire a controlling stake in Sahyadri Hospitals Ltd, one of the largest hospital chains in Maharashtra, for an undisclosed valuation. This new investment will help Sahyadri to cement its position as the leading healthcare chain in Maharashtra.
Post acquisition, the hospital chain is expected to significantly increase its bed capacity in the next five years with a combination of primary and secondary capital outlay. Sahyadri currently has a total of more than 1000 clinicians along with 2300 supporting staff providing latest medical services in its existing facilities.
Founded in 1994, Pune headquartered Sahyadri Hospitals currently operates 5 tertiary care and 3 secondary care hospitals with 750 beds across Pune. Apart from 6 facilities in Pune located at Deccan Gymkhana, Nagar Road, Kothrud, Bibwewadi, Kasba Peth and Hadapsar, it has hospitals in Nashik and Karad areas as well.
“Sahyadri Hospitals is a reputed name for quality healthcare and will act as the anchor asset of our healthcare delivery platform. Everstone will leverage its’ significant healthcare expertise and experience to grow the overall business,”said Sameer Sain, CEO, Everstone Group.
“We look forward to working closely with our partners and stakeholders,” he said in a media statement announcing the acquisition.
Commenting on the Everstone Group investment, Dr. Charudutt Apte, Founder, Chairman and MD, Sahyadri Hospitals said, “Sahyadri Hospitals looks forward to the next phase of growth with the support of the experienced team at Ever-stone.”
According to industry estimates, private secondary and tertiary healthcare delivery in India is expected to grow from $42 billion in 2018 to $65 billion by 2022 at a compounded annual growth of about 12%.
Everstone is one of the largest India and South East Asia focused healthcare equity investor at present. In 2015, it successfully exited Global Hospitals, a large multi-specialty tertiary hospital chain, generating strong returns. Everstone’s healthcare portfolio currently includes controlling stakes in domestic pharma distribution platform, Ascent Health; South East Asia based diagnostic device platform Everlife and an investment in one of the largest nutraceutical ingredient business, OmniActive.
Everstone had also recently announced its successful exit from Rubicon Research (Rubicon) generating returns of 4.5 times. With assets in excess of $5 billion across private equity, real estate, green infrastructure and venture capital, Everstone Group also has a significant resource base across seven offices located in Singapore, Mumbai, Delhi, Bangalore, London, New York and Mauritius.