Ontario Teachers makes first Indian control buyout deal with Sahyadri Hospitals Group investment [buyout/ takeover]

Ontario Teachers’ Pension Plan Board announced an agreement to acquire a significant majority stake in Sahyadri Hospitals Group, the largest private hospital chain in the state of Maharashtra, from the Everstone Group. Existing sponsor, Everstone Group, along with key management and founders will retain minority stakes in the company.

Sahyadri has 8 hospitals with c. 900 operating beds and 300 critical-care beds. In addition, the hospital chain has plans to grow capacity by over 500 beds during the next five years. With 2,000 clinicians along with 2,600 supporting staff across its network of hospitals, Sahyadri’s facilities are concentrated around the city of Pune, which is the second largest city in Maharashtra by population.

“We are pleased to acquire a majority stake in Sahyadri Hospitals, which is our first control private equity buyout in India, and our fourth major investment in the country over the last 12 months. We believe we can leverage our significant global experience in the healthcare sector to help scale the company into a national healthcare provider in the coming years,” said Raju Ruparelia, Senior Managing Director, Private Capital, Asia-Pacific at Ontario Teachers’. “We look forward to partnering with the company’s founders, Dr. Charudutt Apte, Sadanand Bapat and Nitin Desai, as well as the management team and Everstone to support the business as it enters its next stage of growth.”

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“It has been a great experience partnering with Everstone and executing the playbook of consolidation and growth. We look forward to working with Ontario Teachers’ to further build on this base and expand into other parts of the Western India region. Sahyadri as a brand is all set to take up a larger role in the Indian healthcare delivery ecosystem, not only in footprint, but in setting up some of the most advanced and exemplary clinical practices in India. We believe that Ontario Teachers’ is an ideal partner to help us achieve this,” said Abrarali Dalal, Chief Executive Officer of Sahyadri Hospitals.

“We welcome Ontario Teachers’ and look forward to our partnership as we work toward our objective of making healthcare more accessible and affordable. This objective has been our guiding principle in establishing the brand Sahyadri. Today, not only are we known as the brand with the largest footprint in Maharashtra, but our clinical credentials continue to remain unparalleled,” said Dr. Charudutt Apte, Founder of Sahyadri Hospitals. He further adds, “I want to express my thanks to Everstone for walking shoulder to shoulder and supporting us in taking Sahyadri to where we are. It has been a wonderful journey.”

“Sahyadri is the largest multi-specialty healthcare service provider in the West India corridor. Sahyadri’s unique hub and spoke model and best-in-class clinical capabilities have truly touched patient lives. 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,” said Puncham Mukim, Managing Director of Everstone.

Sahyadri is the latest investment by Ontario Teachers’ Private Capital team in high-performing healthcare businesses. Recent investments include Asia Pacific Healthcare Group, New Zealand’s largest pathology network, Abano Healthcare, the operator of one of the largest trans-Tasman dental groups, and Acorn Health, a leading U.S. provider of Applied Behavior Analysis therapy for children diagnosed with Autism Spectrum Disorder.

The transaction is expected to close in Q4 2022 and is subject to customary closing conditions.

Source: Press Release