Dubai-based global investor, Abraaj Group, will acquire a majority stake in Quality CARE India Ltd (CARE Hospitals) from Advent International through one of its funds.
Founded in 1997 by B Soma Raju, Hyderabad-based CARE is the fifth largest healthcare provider in India, operating 2,600 beds across 16 hospitals in nine cities.
The transaction is expected to conclude in the first quarter of 2016.
Abraaj and CARE’s management will focus on expanding its integrated healthcare delivery system, especially in the underpenetrated regions of India. The partnership will also bring CARE’s delivery platform to other markets where Abraaj operates.
CARE Foundation, the company’s education, training and rural community outreach programme, will also be scaled up and expanded to develop and train high calibre nurses, technicians, physiotherapists and community health workers.
“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,’’ Sev Vettivetpillai, Partner and Global Head of Abraaj’s Thematic Funds Business, said in a release issued here on Wednesday.
CARE has potential for further expansion domestically and internationally, he added.
B Soma Raju, Founder of CARE, 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.”
The Abraaj Group has a strong track record of investing in healthcare, having deployed nearly $1 billion globally in 27 investments across the healthcare spectrum in growth markets.