New Delhi, Nov. 13 -- After closing five deals in the first seven months of the financial year, private-equity backed Entero Healthcare Solutions Ltd is set to acquire two companies which engage in the distribution of medical devices and healthcare products.
The Mumbai-listed company, which counts healthcare-focussed private-equity firm OrbiMed, Singapore's sovereign wealth fund GIC and India's PremjiInvest as investors, has agreed to acquire 80% stake in New Delhi-based Bioaide Technologies Pvt Ltd and a 51% stake in Pune-headquartered Anand Chemiceutics Pvt Ltd.
The healthcare-products distribution company expects to spend in the range of Rs 31.13-Rs 36 crore (around $3.5 million to $4 million) to acquire Bioaide and about Rs 210-230 crore (around $23 million to $26 million) in the acquisition of Anand, a stock exchange filing showed.
The acquisitions aligns with the company's core focus area of wholesale distribution of medical devices and other allied products, Entero said in the filing.
According to an investor presentation, the company expects to close the two new deals in the second half of the fiscal year. Through all seven acquisitions, the company expects to hit Rs 1,000 crore in revenue in FY26 and sees gross margin rising from 10.2% to as much as 11.1% and EBITDA margin to increase from 4.0% to up to 4.75%.
"We are expanding significantly in the MedTech segment through new acquisitions which marked a pivotal step forward - a move that creates meaningful synergies with our existing pharmaceutical distribution and enhances our overall margin profile," said Prabhat Agrawal, managing director and CEO at Entero Healthcare Solutions.
Anand Chemiceutics, incorporated in2022, is a wholesale distribution of medical devices and other healthcare products with operations present only in India. The company saw revenue rise 51% year-on-year to Rs 474.9 crore in FY25, from Rs 314.2 crore, as per the stock exchange disclosure. Bioaide was set up in 1996. The company is also a distributor of medical devices and other healthcare products with operations solely in India. In FY25, the company reported Rs 55.8 crore revenue, up 5.4% y-o-y, from Rs 52.9 crore in FY24.
This September, it acquired a 60% stake in Ace Cardiopathy Solutions for Rs 59.3-Rs 77.1 crore and separately approved a 100% equity stake sale in its unit Suprabhat Pharmaceutical to the former promoters of Suprabhat, Yash Sudhir Biradar and Kavita Sudhir Biradar.
Published by HT Digital Content Services with permission from VC Circle.