(vIndianz, June 25 2010): Metropolis Healthcare Ltd (Metropolis), the multinational chain of diagnostic laboratories, has said that Warburg Pincus, a leading global private equity firm, is making an investment of up to $85 million in the company.
Ameera Patel, Executive Director & CEO, Metropolis
As part of this deal, Indian private equity firm ICICI Ventures has completely divested its holding in the company, which it had acquired in 2006. The deal involves a primary and secondary component and also includes additional capital that will be available to Metropolis to pursue acquisitions.
In a fragmented market for medical diagnostic services in India, Metropolis has established itself as a national player of scale. Through a network of 45 state-of-the-art laboratories and over 350 collection centers across India, Metropolis processes over 12 million tests a year, serving over 10,000 laboratories, hospitals, and nursing homes and 50,000 doctors. The company has expanded through a combination of organic growth and partnerships. In addition to building a strong business in India, the company has successfully established its brand through 10 laboratories in Sri Lanka, South Africa and UAE. Metropolis will continue to seek attractive acquisition opportunities while expanding its delivery network and deepening its presence in current locations.
According to Ameera Patel, Executive Director & CEO, Metropolis, “Since our inception in 1981 as a Mumbai-based laboratory, Metropolis has been setting industry benchmarks time and again. Over the years, we have built India’s only multinational chain of diagnostic centers, and today the brand is well-respected amongst the healthcare and business fraternity. Our association with ICICI Ventures over the last few years has been rewarding and we are delighted to welcome Warburg Pincus as our future partner. We are confident that with their support we will achieve our vision of consolidating Metropolis as the foremost clinical diagnostics service provider across the emerging markets of South Asia, Africa and Middle East.”
Niten Malhan, Managing Director, Warburg Pincus India Private Limited said, “Warburg Pincus has a history of partnering with distinctive management teams to create durable businesses with sustainable value. Metropolis is a pioneer in the pathology industry in India and over a period of almost three decades, the company has grown to be the leader in the field of clinical diagnostics with a network of 55 state of the art laboratories across four countries. Led by a talented management team, Metropolis is well-positioned to leverage growth opportunities in the clinical diagnostics business.”
O3 Capital acted as the sole financial advisor to Metropolis for this transaction. Amarchand & Mangaldas & Suresh A Shroff acted as legal advisors to Warburg Pincus, Desai Diwanji acted as legal advisors to Metropolis and Ernst &Young conducted financial and accounting diligence for the transaction.
- A Clinical Drug Trial Via Phone, Computer – Wall Street Journal
- Sony Expects TV Sales in India to Grow 70% – Wall Street Journal
- Club Mahindra announces 1 lakh member families
- Sprint Pulls A Lazarus On Einhorn Endorsement, Network Uprade – Forbes
- AirTran profit hurt by weather, fuel, legal fees – BusinessWeek
- Dish Sells $2 Billion of Bonds in First Offering Since 2009 – Bloomberg
- Q&A with NFL Network legal analyst Gabe Feldman – NFL News
- 1.25 families became legal landowners in ’10 – Economic Times
- Facebook and Twitter Lead To Explosion In Private Company Stock Transactions – Forbes (blog)
- Data signals weakness in US recovery in April – Reuters
Stay updated! Follow us on twitter and subscribe to our feed via Feedburner.
No Comments