Warburg Pincus in $400m bid for MedPlus India
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Private equity investor Warburg Pincus is making a bid of up to $400 million for the giant MedPlus India pharmacy chain.
Nine year old MedPlus currently operates a network of 1200 retail stores in 12 states of India.
Promoter Madhukar Gangadi, who together with his family owns 31 per cent of the company, wants to ramp up the brand’s rollout to a massive 10,000 stores by 2020.
Warburg Pincus is one of several in a race to acquire 69 per cent of the business, according to The Economic Times newspaper. Its rivals include General Atlantic and Bain Capital.
If the chain fetches the figures being broadly quoted – between $350 and $400 million – it would represent a 250 per cent profit on the original investment of the outgoing shareholders, US-based Mount Kellett Capital Management, TVS Capital Funds and Ajay Piramal’s India Venture Advisors.
Investment bank Credit Suisse is leading the search for strategic buyers to help fund the store rollout.
Questions & Answers
Q.What is the current size and reach of the MedPlus India pharmacy chain?
What is the current size and reach of the MedPlus India pharmacy chain?
MedPlus India, established nine years ago, currently operates a network of 1200 retail stores. These stores are spread across 12 states within India, demonstrating a significant existing presence.
Q.What are the future expansion plans for MedPlus India, and who owns the company currently?
What are the future expansion plans for MedPlus India, and who owns the company currently?
Promoter Madhukar Gangadi, who along with his family owns 31 per cent of MedPlus, aims to expand the brand to 10,000 stores by 2020. This ambitious rollout plan is driving the search for new investment.
Q.Which other firms are competing with Warburg Pincus to acquire a stake in MedPlus India?
Which other firms are competing with Warburg Pincus to acquire a stake in MedPlus India?
Warburg Pincus is one of several private equity firms interested in acquiring 69 per cent of MedPlus India. Other rivals in the race include General Atlantic and Bain Capital, as reported by The Economic Times.
Q.Which investment bank is assisting MedPlus India in finding strategic buyers for the company?
Which investment bank is assisting MedPlus India in finding strategic buyers for the company?
Investment bank Credit Suisse is leading the effort to find strategic buyers for MedPlus India. Their role is to help secure the necessary funding to support the planned expansion of the pharmacy chain's stores.
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