Dubai-based Abraaj Group has announced that it has agreed to acquire a majority stake in Quality CARE India Limited, one of the largest multi-specialty healthcare providers in India. The deal, made through one of its funds, sees Abraaj buy the stake from global private equity firm Advent International. No value for the deal was disclosed.
Headquartered in Hyderabad, CARE is the fifth largest healthcare provider in India, operating 2,600 beds across 16 hospitals in nine cities. Philips product ideation in the field of healthcare is focused on technology solutions that enable quick and definitive diagnosis.
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, 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, Abraaj said in a statement. It added that 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 calibre nurses, technicians, physiotherapists and community health workers.
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.
"We are excited to partner with one of India’s leading healthcare providers and contribute to developing more robust health systems in growth markets.”
Dr. B Soma Raju, founder of CARE, added: “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.”
The Abraaj Group has invested nearly $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.