Fidelity PE in $75m India deal

Fidelity Growth Partners India has made a $75 million investment in Trivitron Healthcare, hoping to expand the Indian medical equipment provider globally.

Fidelity Growth Partners India has made a INR 4 billion (€57 million; $75 million) investment in Trivitron Healthcare Private in India, providing a partial exit for both Headland Capital Partners and ePlanet Ventures, according to a joint statement.

The stake of the deal was undisclosed, but a Fidelity spokesman confirmed that it was a significant minority stake. This is Fidelity’s first investment in Trivitron, and the firm now has two board seats in the company.

Headland and ePlanet have been invested in Trivitron since 2007, and they will continue to be minority shareholders in the company.

Trivitron is India’s largest wholesale distributor and after-sales support provider of medical equipment and devices, according to the statement. The company has several international joint ventures, including Hitachi-Aloka (Japan) for manufacturing ultrasound equipment and with Biosystems (Spain) for lab diagnostics.

With Fidelity’s capital, Trivitron hopes to expand globally through acquisitions in the US and Europe and by enhancing distribution in Southeast Asia, the Middle East and Africa, according to the statement.

“The medical equipment sector in the country is still nascent and dominated by imports,” Raj Dugar, senior managing director at FIL Capital Advisors, the private equity advisory arm for Fidelity, said in the statement. “We believe that India will follow the same evolution trajectory as other emerging markets like China where large, indigenous manufacturers of medical equipment have emerged over the past decade.”

Healthcare is one of Fidelity’s major areas of focus, according to the firm's spokesman.

Kotak Mahindra Capital Company (KMCC), the investment banking arm of Kotak Mahindra Bank, was the exclusive advisor to Trivitron on the transaction.

Fidelity Growth Partners India is the India-focused arm of Fidelity Worldwide Investment, which currently has $232 billion in assets under management. Its investments in India typically range from $10 million to $50 million, and the firm focuses on cross-sector growth capital investing. Founded in 2005, the firm is invested in 13 companies in India.