Global investors led by Arpwood buy majority stake in Sterling Hospitals

INDIA – Indian and foreign investment firms have joined private equity company Arpwood Partners to acquire majority stake in Girish Patel-promoted hospital Sterling Addlife Hospitals India Pvt Ltd for an undisclosed amount.

The company operates the Sterling Hospitals chain of multi-specialty hospitals in Gujarat.

Post-acquisition, Sterling Hospitals’ Founder Girishbhai Patel has retained a minority stake and will continue to be a mentor to Sterling Hospitals.

According to Arpwood Partners, the consortium will now invest in high-caliber clinical talent, infrastructure upgrade and patient service experience, and deliver quality medical care to patients.

“We will soon announce an experienced CEO who has had a long and distinguished record at one of the largest national healthcare chains,” an Arpwood Partners spokesperson said.

Commenting on the new investors in Sterling Hospitals, Patel stated that the partnership with Arpwood is aimed at pursuit of medical excellence at Sterling Hospitals.

Founded in 2001, the multispecialty hospital chain has presence in Ahmedabad, Vadodara, Rajkot and Gandhidham, operating a network of 6 NABH accredited hospitals with a combined 1,000+ operating beds.

Staying on the mergers and acquisition front, Medical equipment maker ResMed Inc announced it plans to buy German healthcare software provider MEDIFOX DAN in a US$1 billion deal to expand in software-as-a-service (SaaS) outside the United States.

ResMed will fund the deal, which is expected to close by the end of its second quarter in the fiscal year 2023, with its credit facilities.

According to Arpwood Partners, the consortium will now invest in high-caliber clinical talent, infrastructure upgrade and patient service experience, and deliver quality medical care to patients.

ResMed stated that the deal will add to its non-Generally Accepted Accounting Principles (non-GAAP) diluted earnings per share after the close.

Also, Dr Reddy’s Laboratories Said it aims to be among the top five drugmakers in India, largely driven by mergers and acquisitions of brands, companies, and in-licensing deals targeting chronic categories, along with broadening of nutraceutical and over-the-counter (OTC) portfolios, Economic Times reports.

However, the company did not set the deadline but said it wants to achieve the target in the “foreseeable future.”

Dr Reddy’s Labs is currently ranked as number 10 and has been steadily moving up the ranks. It was ranked 16 about five years ago.

India contributed about a fifth or Rs 4,196 crore (US$ 531.5 million) of the company’s overall sales of Rs 21,439 crore (US$2.7 billion) in 2021-22, but domestic business has clocked 17% compound annual growth rate in the past four financial years, well above the sector average of 9-10%.

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