Global private equity giant Apax Partners is understood to be zeroing in on a Rs 200 crore deal to pick up a strategic stake in Metropolis Healthcare which runs a nationwide chain of diagnostic labs and is among the top three in India.
According to industry information, Apax Partners is expected to buy out the 25 per cent stake held by ICICI Venture in Metropolis and invest further cash totalling Rs 200 crore in this deal. ICICI Venture had invested Rs 35 crore during 2006 for close to 25 per cent.
The Mumbai-headquartered Metropolis’ range of services include clinical laboratory medicine, radiology and imaging services, hospital laboratory management, central laboratory services for clinical trials, site management services, home health services, preventive health check ups and remote pathology testing services.
Apax Partners is one of the world’s leading private equity investment groups. It operates across the United States, Europe, Israel and Asia, and has more than 30 years of investing experience. Funds under the advice of Apax Partners total $20 billion around the world.
Recent reports indicate that European PE major TA Associates is also eyeing a stake in Metropolis. Industry sources detail that Metropolis is finalising the deal and is in advanced stages of negotiations with three PE majors. The management of Metropolis could not be reached for comments.
The nearly three-decade-old Metropolis has over 55 labs spread across India, Sri Lanka, UAE, South Africa, Bangladesh and Seychelles and processes over 10 million tests every year with referrals from 10,000 labs and its own franchise network. Metropolis in the recent past has been growing aggressively through acquisitions and is understood to have effected 12 of them during the past five years.