Apollo HealthCo to Raise Rs 2,475 Crore Investment from Advent International

• ByStartupStory     |    April 27, 2024

Apollo HealthCo Ltd, a subsidiary of Apollo Hospitals Enterprise, has finalized a substantial investment agreement with global private equity firm Advent International. This agreement entails raising Rs 2,475 crore, with Advent International acquiring a 12.1% stake in the integrated entity. The investment will facilitate the merger of Apollo HealthCo’s wholesale pharmaceuticals distributor, Keimed Pvt Ltd, over the next 24 to 30 months.

The combined entity resulting from this collaboration will be valued at Rs 22,481 crore, leveraging Apollo HealthCo’s current valuation of Rs 14,478 crore and Keimed’s valuation of Rs 8,003 crore. Post-merger, shareholders of Keimed Pvt Ltd will hold a 25.7% stake, with Apollo Hospitals Enterprise Ltd remaining the majority shareholder.

Dr. Prathap C Reddy, Chairman of Apollo Hospitals Group, expressed enthusiasm about the partnership, highlighting the mission to provide high-quality healthcare to millions of Indians. He emphasized the impact of Apollo 24/7 in reaching over 33 million individuals in a short timeframe, emphasizing reliability and affordability.

Apollo Hospitals Enterprise Managing Director, Suneeta Reddy, praised Advent International’s investment, recognizing its potential and the inherent value of Apollo 24/7. The merger with Keimed is viewed as a significant step towards integrating a comprehensive supply chain, poised to deliver Rs 25,000 crore in revenue within three years, with a projected EBITDA of 7-8%.

Advent India Head and Managing Partner, Shweta Jalan, underscored the investment as a commitment to India’s rapidly expanding healthcare sector. The partnership aims to leverage Apollo’s established brand and Advent’s industry expertise to accelerate growth in India and globally.

Financial advisory for the transaction was provided by Veda Corporate Advisors, with legal counsel handled by Shardul Amarchand Mangaldas and Company for Apollo HealthCo, AZB and Partners for Apollo Hospitals Enterprise Ltd, and Cyril Amarchand Mangaldas for Advent International.

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