Carlyle Group buys 37% stake in Metropolis Healthcare

Global private equity firm Carlyle Group has acquired 37 percent stake in diagnostic chain Metropolis Healthcare by buying out the share of its promoter GSK Velu and his affiliates for an undisclosed sum.

An affiliate of Carlyle Asia Partners IV has bought a stake in Metropolis Healthcare Ltd, a multinational chain of pathology laboratories, Carlyle Group said in a statement.

While Carlyle Group did not disclose details of the transaction, including the stake it had acquired in Metropolis, industry sources said it has bought "the entire 37 percent stake" held by GSK Velu and his affiliates.

Commenting on the development, Carlyle Asia Buyout Team Managing Director Neeraj Bharadwaj said, "We are delighted to partner with Metropolis and back its promoter as well as its management team, and will leverage our healthcare industry expertise to support the company's growth plans."

Metropolis Healthcare Promoter, MD & CEO Ameera Shah said it will be an "all-new chapter for Metropolis" and the past six months have truly been a turning point for the company.

"We have created immense value for the selling shareholder and previous investors and are eager to work with the Carlyle Group to build on this track record of success," Metropolis Healthcare Chairman Sushil Shah said.

With the transaction, GSK Velu will have no holding in the diagnostic chain that has over 125 laboratories along with collection centres across seven countries - India, Sri Lanka, the UAE, South Africa, Kenya, Mauritius and Ghana.

Metropolis Healthcare plans to invest around Rs 120 crore to add 40 laboratories and around 700 collection centres across India and abroad by the end of next financial year.

Carlyle has extensive experience in the healthcare sector in Asia with investments in Healthscope in Australia, Meinian Onehealth and Concord Medical in China, as well as Global Health in India.

The Carlyle Group has invested $1.3 billion of equity in more than 30 transactions in India as of June 30, 2015.