Abraaj Group to buy majority stake in CARE Hospitals

Abraaj Group to buy majority stake in CARE Hospitals

Dubai-based Abraaj Group, a leading investor operating in global growth markets, has decided to acquire a majority stake in Hyderabad headquartered Quality CARE India from global private equity firm Advent International for an undisclosed sum.

CARE, founded in 1997 by B Soma Raju and a core group of professionals, is the fifth largest healthcare provider in India, operating 2,600 beds across 16 hospitals in nine cities.

To date, CARE has treated more than six million outpatients and over one million inpatients, a majority of which are from the middle and low income groups in underserved second tier cities in India.

The transaction is subject to customary closing conditions, and is expected to conclude in the first quarter of 2016. Abraaj and CARE’s management team will focus on expanding CARE’s integrated healthcare delivery system, especially in the underpenetrated regions of India.

The partnership will also bring CARE’s high quality and proven delivery platform to other markets where Abraaj operates.

DH News Service

The CARE Foundation, the company’s education, training and rural community outreach programme, will also be scaled up and expanded to develop and train high calibre nurses, technicians, physiotherapists and community health workers, Abraaj Group said.

“Led by dedicated founders and a strong management team, CARE has been a pioneer in providing quality healthcare to middle and low income patients in India, and has the potential for further expansion domestically and internationally. We are excited to partner with one of India’s leading healthcare providers and contribute to developing more robust health systems in growth markets,” Abraaj Group managing director and head of healthcare Khawar Mann said.

“We are confident that Abraaj with its track record, healthcare expertise and strong relationships with leading strategic partners and development finance institutions, will enhance our service offerings. These relationships will play a key role in enhancing public-private partnerships that are essential to the development of sustainable healthcare systems in India,” CARE founder B Soma Raju said.