Arpwood leads acquisition of India's Sterling Hospitals

Sterling was founded in 2001 by Girish Patel, who will retain a minority stake in the business and stay active in an advisory capacity. A new CEO is expected to be named in due course.

The company operates six hospitals in the western state of Gujarat across the cities of Ahmedabad, Vadodara, Rajkot and Gandhidham. Its flagship location in Ahmedabad was the first hospital in the state to be accredited by NABH, a national accreditation entity. Gujarat has a population of about 65m.

The portfolio has a combined capacity of around 1,000 beds and claims expertise in a range of disciplines from dentistry and psychiatry to robotic surgery and microbiology. There is also a cancer centre in Ahmedabad.

Sterling is also said to be the only hospital in Gujarat to offer thrombolytic therapy for paralytic patients and the first in the state to set up bone marrow and dialysis units. Nationwide, it was the first to offer continuous renal replacement therapy, a type of 24-hour dialysis for critical kidney failure.

Historical investment includes Actis taking a 41% stake for USD 15.5m in 2006. The GP gradually increased to an 82% position before selling back to Patel in 2013. That year, Temasek Holdings-backed HealthCare Global reportedly bid INR 5bn (then USD 82m) for the company.

Arpwood was set up in 2013 by Rajeev Gupta, formerly of The Carlyle Group, and Amol Jain, previously of TPG Capital, with a focus on mid-market buyouts in India. Sectors going through restructuring and companies spinning out assets are of particular interest.

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• Topics
• South Asia
• Buyouts
• Healthcare
• India
• Arpwood Capital