3i eyes new deals in health care sector

European private equity firm 3i Group Plc is exploring fresh investments in India’s health care sector, nearly two years after it made its first. “We are currently looking at several proposals for comparatively large investments in the country’s pharmaceuticals, medical devices manufacturing, and health care and laboratory services industries, including large and medium hospital groups,” said Mahesh Chhabria, partner, 3i India Pvt. Ltd, the local arm of the London-listed buyout firm. 3i India’s previous investment in the sector was in May 2007, in clinical research organization Siro Clinpharm Pvt. Ltd, the country’s largest fully integrated clinical trials organization. The firm has been in India since 2005; its investment portfolio here is currently valued at $920 million Chhabria said in an interview with Mint on Thursday that the new investments could be in the form of a local acquisition by Siro Clinpharm. Siro Climpharm, which acquired German clinical trials company Omega Mediation group and its associates in Europe in May, will look at one or two strategic acquisitions in India after the integration is completed this year. “Our investments had been in companies which are either the only player or the leaders in that particular sector, and the deals were not below $30 million (Rs151.5 crore),” Chhabria said. 3i Group has been in India since 2005 and has invested in sectors including media, automotive, construction, power, ports and manufacturing. The firm’s investment portfolio in India is currently valued at $920 million. In 2007, the private equity firm also signed a strategic partnership with India Infrastructure Finance Co. Ltd to invest in public works. After launching a $1.2 billion India infrastructure fund in 2008, it has so far invested at least $330 million in Indian utilities, according to information on its website. Globally, 3i Group has health care investments valued at €1.6 billion (Rs10,976 crore). In January, the firm hired John Moore, a former managing director and global head of health care investment banking at Morgan Stanley, as a partner responsible for its health care investment strategy across the US.

GE Healthcare enters home healthcare market in India

GE Healthcare, the USD 17 billion healthcare business of UK-based General Electric Company, has announced its entry into the home healthcare market in India with the introduction of its sleep care and home respiratory care solutions. GE Healthcare's foray into Indian market came with its acquisition of Vital Signs Inc and its subsidiary Breas Medical AB, according to a company press release. V Raja, president and CEO, GE Healthcare - South Asia, said, "Home healthcare is largely untapped, while at the same time, a fast growing market in India. This global acquisition is consistent with GE's strategy to invest in high technology, innovative businesses that deliver top-line growth and earnings expansion.”“It is a strong, strategic fit and allows us to address the individual patient directly, for the first time. This is our first foray into home health in India,” added Raja.Currently, GE Healthcare is operational in more than 100 countries across the world, added the release.

Apollo Health buys US BPO for Rs 697cr

Hyderabad-based Apollo Health Street (AHS), a Apollo Hospitals Group (AHG) subsidiary, made its second US acquisition by acquiring Atlanta-based business process outsourcing (BPO) and enterprise solutions company Zavata Inc for Rs 697 crore.

“The Zavata acquisition will enable us to enhance offerings to our customer base and aid in increasing client base. With this acquisition, we will be able to position ourselves as one of the biggest global healthcare outsourcing companies,” Prathap C Reddy, chairman, AHG said.

The acquisition, the fourth for AHS, will be funded by raising a debt of $135 million from Bank of India and Barclays Capital. AHG, which held 47% in AHS pre-merger, has invested around $25 million to retain the same holding in the merged entity.

Sangita Reddy said the addressable US outsourcing market which could be effectively utilised is around $30 billion and $48 billion in the payer and provider segments respectively.

(Source: Business Standard