Apollo HealthCo Raises INR 2,475 Cr from Advent International Under the terms of the deal, Apollo HealthCo Ltd would integrate 100% of its wholesale pharmaceuticals distributor firm Keimed Pvt Ltd with Advent International over the next 24 to 30 months.
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Apollo HealthCo Limited ("Apollo 24|7" or"AHL "), a subsidiary of Apollo Hospitals Enterprise Limited ("AHEL") announced that it has entered into a binding agreement to raise equity capital of INR 2,475 crore from global private equity firm Advent International ("Advent").
Under the terms of the deal, Apollo HealthCo Ltd would integrate 100% of its wholesale pharmaceuticals distributor firm Keimed Pvt Ltd with Advent International over the next 24 to 30 months.
A joint entity would be established, with Advent International acquiring a 12.1% stake. With Apollo HealthCo valued at INR 14,478 crore and Keimed valued at INR 8,003 crore, the combined entity would be valued at INR 22,481 crore.
Post-merger, shareholders of Keimed Pvt Ltd would hold a 25.7% stake, while Apollo Hospitals Enterprise Ltd would be the majority shareholder.
Following the merger, AHEL would continue to be the largest controlling shareholder with at least 59.2% stake, while Keimed shareholders would maintain a maximum of 25.7% stake in the combined entity.
Dr Prathap C Reddy, Chairman, Apollo Hospitals Group, said, "Our mission has been to deliver high-quality healthcare to all Indians at an affordable cost and with a high degree of reliability and trust. Apollo 24|7 has delivered on this promise and has reached over 33 million Indians in a short span of time. With Advent's investment and the merger of Keimed, the combined entity will be one of the country's leading retail health companies."
Suneeta Reddy, Managing Director, Apollo Hospitals Enterprise Limited, added, "The merger of Keimed is a significant step in the integration of the comprehensive supply chain. The combined entity will deliver INR 25,000 crore of revenue in 3 years with 7-8% EBITDA."
Veda Corporate Advisors were the financial advisors for the transactions.
Launched in February 2020, Apollo 24|7 is a comprehensive digital health platform that includes a wide range of healthcare services, such as doctor consultations, medicine home deliveries, diagnostics at home, chronic condition management, and insurance offerings.
Apollo 24|7 claims that since its inception, it has had a user base of over 33 million and is supported by a network of more than 7,000 doctors.
Shweta Jalan, Managing Partner and Head of Advent India, said, "This investment demonstrates Advent's commitment to investing in the fast-growing healthcare sector in India. We can't wait to partner with the Apollo franchise, a household brand built with 40+ years of hard work by the Reddy family. Leveraging our deep understanding of the industry in India and globally, we are looking forward to helping accelerate this journey."
