India-focused private equity company CX Partners has acquired a controlling stake in Kerela-based Sabine Hospital and Research Centre, which specialises in providing fertility services and mother-and-child care.
As part of this strategic move, CX Partners has made an Rs4.2bn ($50.2m) investment in Sabine Hospital, The Economics Times has reported.
The hospital, which offers programmes such as gynaecology, neonatology, obstetrics, infertility treatments, paediatrics, and assisted reproductive technology, will use the new investment to expand the infertility treatment centres within Kerala and neighbouring states in India.
Sabine Hospital currently operates a 200-bed flagship hospital in Muvattupuzha and a 100-bed centre in Thiruvananthapuram in Kerela.
The hospital aims to launch at least six new centres across Kerala in the next six to eight months and intends to double its existing bed capacity to 600.
Details regarding the exact stake acquired by CX Partners and the post-funding valuation of Sabine Hospital have not been disclosed.
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By GlobalDataEstablished in 2010, Sabine’s Muvattupuzha Hospital is a destination for couples throughout Kerala seeking IVF treatment.
The hospital currently conducts approximately 500-600 IVF cycles monthly, accounting for approximately 42%-45% of all IVF procedures in the state.
The Economics Times quoted Sabine Hospital founder and chairman Sabine Sivadasan as saying: “We want to replicate the same model we have in Muvattupuzha—affordable, integrated mother and child care—in other areas of Kerala, and then to Tamil Nadu, Karnataka, and later pan-India.”
CX Partners has a history of investing in high-growth mid-market companies in the healthcare sector such as Thyrocare Technologies, Natco Pharma, and Healthium Medtech.
CX Partners managing partner Vivek Chhachhi said: “Fertility is a growing medical need. Sabine Hospital has taken market leadership in Kerala through patient-centricity, accessibility and affordability. While doing that, it has delivered good financial performance, so the CAGR in revenues of the last three years is 25%, with profit growth slightly faster at 32%. We think the model is good for patients. We are hoping that with the growth capital, Sabine Hospital will grow over 30% revenue.”