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Investment
Metropolis Healthcare Announces Investment by Warburg Pincus
The deal involves a primary and secondary component
Metropolis Healthcare Limited (Metropolis), India's only multinational chain
of diagnostic laboratories, announced that Warburg Pincus, a leading global
private equity firm, is making an investment of up to $85 million in the company.
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.
O3 Capital acted as the sole financial advisor to Metropolis
for this transaction. Amarchand & Mangaldas and 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.
Said 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."
Said Niten Malhan, Managing Director, Warburg Pincus India Private Limited,
"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."
Said Dalip Pathak, Member of the Executive Management Group
at Warburg Pincus, "Healthcare is an important focus area for Warburg Pincus.
We are delighted through this investment to expand our presence in the sector
in India, particularly by partnering with Metropolis, which is uniquely positioned
in healthcare services."
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 the UAE. "Metropolis will continue to seek
attractive acquisition opportunities while expanding its delivery network and
deepening its presence in current locations," said Patel.
EH News Bureau
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