The Shah family, consisting of founder chairman Sushil Shah and CEO Ameera Shah, has bought back their stake in diagnostics laboratory chain Metropolis Healthcare Ltd, from US-based private equity major Warburg Pincus.
Warburg has sold its 27% stake in Metropolis, to the promoter Shah family. At present, Shah family and GSK Velu, founder of Metropolis equally hold the remaining stake in Metropolis. Financial details of the deal were not yet disclosed.
In 2010, Warburg Pincus had invested about $85 million (Rs 395 crore) Metropolis Healthcare, by buying stake owned by ICICI Venture as well new shares from promoters. ICICI Venture first invested in Metropolis with an initial Rs 35 crore from its India Advantage Fund Series-1 in 2006.
Niten Malhan, Managing Director, Warburg Pincus India Private Limited said, “The decision to invest in Metropolis in 2010 was based on our thesis that demand for and growth trends in medical diagnostics will continue and that Metropolis was well positioned to benefit. We are pleased to have partnered Metropolis during its critical growth phase."
Ameera Shah, MD & CEO, Metropolis Healthcare Ltd., said “The company is now supported by eminent independent directors and I am backed by other marquee investors including KKR and eminent industrialists. The relationship with Warburg Pincushas a mutually beneficial for the investor and the company.”
Metropolis, founded in 1998, has a network of 125 laboratories across India and 6 other countries in the emerging markers, with over 750 collection centres, processing over 15 over 4,500 varieties of tests with a team of more than 3500 people.
It delivers over 15 million tests a year, catering to more than 10,000 laboratories, hospitals, nursing homes and 2,00,000 consultants. Metropolis Healthcare has presence in UAE, Sri Lanka, South Africa, Kenya, Mauritius and Ghana.
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