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Medicare impact: Carlyle buys 37% of Metropolis for Rs 900 crore

New Delhi: Global private equity firm Carlyle Group has purchased 37% stake in Mumbai-based diagnostic chain Metropolis Healthcare from one of its founders for an undisclosed sum.


Carlyle bought stakes held by GSK Velu, one of the founder-promoters of the company. According to industry estimates, Carlyle has invested over Rs 900 crore to acquire Velu’s stake.

The development took place just after the other co-promoter Sushil Shah and family increased their stake in the company from 36% to 63% by means of purchasing stake of private equity firm Warburg Pincus in the company in April this year.

Neeraj Bharadwaj, managing director of the Carlyle Asia buyout team, said, “With an experienced management team, a wide range of test menu and a focus on superior quality and clinical output, Metropolis has developed a strong brand name and established a broad retail franchise in India. We are delighted to partner with Metropolis and back its promoter as well as its management team, and will leverage our healthcare industry expertise to support the company’s growth plans.”

Led by MD & CEO Ameera Shah, Metropolis Healthcare is a chain of pathology laboratories with presence in India, Sri Lanka, UAE, South Africa, Kenya, Mauritius and Ghana, and has a network of 130 laboratories and around 1,000 collection centres in India with around 3,700 employees.

“Metropolis today is better positioned than ever before with a transformed shareholding structure and a new set of board members. The past six months has truly been a turning point for the organisation with the acquisition of Warburg Pincus’ stake and now facilitating the sale of Dr Velu’s shares to The Carlyle Group. This is not only a defining moment but an all-new chapter for Metropolis and I am excited to lead this along with the support of 3,700 Metropolitans,” said its CEO.

The Carlyle Group has invested $1.3 billion of equity in more than 30 transactions in India as of June 30, 2015. It also has an exposure in the healthcare space after it picked up minority stake in the Naresh Trehan-owned Medanta Medcity Hospital.

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