PE funds set to invest $200 m in MedPlus
MUMBAI:
Private equity funds General Atlantic and True North are in advanced talks to jointly invest around $200 million in MedPlus Health Services Pvt Ltd, the second-largest pharmacy retail chain in India, two people aware of the development said.
“The deal will see the two funds buy out the stakes of the three existing investors in the company. The existing investors have been looking for an exit for a long time,” said one of the two people cited above, requesting anonymity as he is not authorised to speak to reporters.
Bringing in new investors will also help the company fund its future growth, he added.
MedPlus’s existing PE investors are US-based Mount Kellett Capital Management LP, TVS Capital Funds Ltd and Ajay Piramal’s India Venture Advisors Pvt Ltd. The three investors together hold a 69% stake in MedPlus, while founder and chief executive officer Dr. Madhukar Gangadi holds the rest.
Mount Kellett holds 49% in MedPlus through its arm MKCP Direct Investments (Mauritius) IV Ltd, TVS Capital’s TVS Shriram Growth Fund I owns 10.59% and Piramal-led India Venture Trust Fund-I holds 9.09%, according to regulatory fillings.
GA, True North (earlier India Value Fund Advisors) and Mount Kellet declined to comment. Emails sent to Dr Gangadi, TVS Capital and Piramal group were not answered.
Besides the pharmacy chain, MedPlus runs businesses such as diagnostics chain MedPlus Pathlabs; RiteCure, a distributor of medical and surgical supplies to hospitals; MedPlusMart.com, an online medical store; and MedPlusLens, an optical store. Most of them are co-located with the pharmacy stores.