Private equity backed diagnostics chain Metropolis has acquired Rajkot, Gujarat-based Sanjeevani Pathology Labs in an all-cash transaction for an undisclosed amount. Ahead of its planned initial public offering, Metropolis is bolstering its presence in markets it is not present, signalling the trend followed by the top players that are acquiring smaller brands in the race to consolidate and grow.
Metropolis has adopted a string of pearls strategy by either partnering or acquiring smaller brands in newer markets. Metropolis has acquired the entire business of Sanjeevani, thereby strengthening its market share and penetration in Western India and giving it a strong foothold in the underpenetrated Saurashtra region.
Founded in 1993, Sanjeevani Pathology Laboratory, promoted by Dr. Kirit Patel has seven collection centres and four labs. This will now be part of the 150 medical laboratories with over 1000 collection centres that IPO bound Metropolis has.Metropolis is backed by private equity fund KKR and a Carlyle Private Equity portfolio company. Investment bank Wodehouse Capital Advisors was the advisor to the deal.