OTPP to acquire majority stake in India's Sahyadri Hospitals

Everstone, along with some management and founders will retain minority stakes. OTPP said it would work with all parties, including three founding doctors, on growing the company. The transaction is expected to close in the fourth quarter of 2022.

Everstone invested INR 10bn (USD 126m) in 2019, taking a substantial controlling stake of unspecified size comprising primary and secondary shares and providing an exit for IDFC Alternatives.

“[S]ome of our other investments are at the periphery of hospital operations, and we can find synergies wherever they are available, whether it’s in pharmaceuticals, devices, or other areas,” Puncham Mukim, a managing director at Everstone, told AVCJ at the time.

Sahyadri has the same infrastructural footprint it did at the time of Everstone’s acquisitions with 900 beds across eight hospitals around Pune, although the number of clinicians has doubled to 2,000. OTPP plans to add more than 500 beds in the next five years and expand across western India, where the hospital is recognised as the largest multi-specialty healthcare provider.

“Sahyadri's unique hub and spoke model and best-in-class clinical capabilities have truly touched patient lives,” Mukim said in a statement. “It is yet another demonstration of Everstone's partnership model and playbook, executing on several operational improvements for patients and doctors, transforming the business and creating significant value for all stakeholders.”

This is OTPP’s fourth major investment in India in the past 12 months. Recent healthcare deals in the broader region include New Zealand dentistry chain Abano, which was acquired alongside BGH Capital in 2020.

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• Topics
• South Asia
• Buyouts
• Trade sale
• Healthcare
• India
• OTPP
• Everstone Capital