Actis, a private equity investor in emerging markets, is investing $15.5 million (€12m) to fund the expansion of Add Life Medical Institute, an Indian hospital group operating in the western state of India and which operates under the Sterling brand.
Sterling owns a 175-bed hospital in Ahmedabad, the commercial centre of Gujarat, and a 100-bed hospital – Unity Medicare – in Baroda, according to a statement from Actis. The investment is aimed at funding the expansion of Sterling’s network of hospitals in key cities throughout Gujarat.
Donald Peck, managing partner of Actis South Asia, said Sterling was identified for Actis’ move into the healthcare sector partly because of “its potential for inorganic growth in the underserved but attractive Gujarat market.”
The transaction is Actis’ third major investment in India, and follows a $30 million investment in Dalmia Cement, a cement manufacturer in South India in March. In December, Actis, invested $21.1 million in Sandhar, an auto components supplier.