Arcapita in 1.7x healthcare exit

The sale of Indian retail pharmacy chain MedPlus marks the first exit from Arcapita India Growth Capital Fund I.

Bahrain-based Arcapita has sold Indian retail pharmacy chain MedPlus Health Services to a consortium of private equity investors, generating a 1.7x cash-on-cash return, according to a source with knowledge of the situation.

Arcapita invested in the company in 2007 from Arcapita India Growth Capital Fund I, a transaction that valued MedPlus at $72 million. MedPlus provides diagnostic services and distributes pharmaceutical products in roughly 800 outlets, primarily across southern India. The sale marks the first exit from AIGC I, which invests in mid-sized Indian companies in the consumer, healthcare, business services and specialised manufacturing industries.

“Throughout India, we continue to see opportunities in each of our asset classes of private equity, real estate and infrastructure,” said Arcapita chief executive officer Atif Abdulmalik, in a statement.

AIGC I has made two other investments to date acquiring minority stakes in Indian cable gels manufacturer Polygel Technologies and IT services company Idhasoft. AIGC invests on a deal by deal basis, and will look to make one to two more minority acquisitions in either India or the GCC region, an Arcapita spokesperson told PE Asia.

Headquartered in Bahrain with offices in Atlanta, London and Singapore, Arcapita focuses on the healthcare, energy, business services, industrial and consumer sectors. The firm looks to make growth-oriented acquisitions with a total transaction value between $50 million and $500 million in the US and Europe and between $30 million and $300 million in the Middle East and Asia.