Chennai: An important merger in the healthcare sector, bulk pharma distribution The company Keimed has merged Apollo Health Company Limited (AHL) is a subsidiary of Apollo Hospitals Enterprise Limited (AHEL). This takes the joint venture value of both the entities to Rs 22,481 crore.

While KeyMed is owned by the Apollo promoter’s family, Omni-channel healthcare platform AHL will leverage the former’s vast network of over 70,000 pharmacies across the country. The integration will take place in a phased manner over the next 24-30 months. Veda was a corporate advisor Specialized Financial Advisor In the transaction, the statement added.

The AHL business includes backend delivery services to over 6,000 pharmacies across 1,100 cities and Apollo 24|7, a comprehensive digital health platform that covers a wide range of healthcare services like doctor consultation. home delivery of medicineHome based diagnostics, chronic condition management and insurance offerings.

In a statement here on Friday, AHL said it has entered into a binding agreement to raise equity capital of Rs 2,475 crore from global private equity investor, Advent International. will be invested in mandatory convertible equipment in two tranches to secure a 12.1 per cent stake in the merged entity, by valuing the combined entity at an enterprise value of Rs 22,481 crore.

While AHL has an enterprise value of Rs 14,478 crore, Keimed is valued at Rs 8,003 crore. As per the merger, Keimed shareholders will hold a maximum of 25.7 per cent stake in the combined entity, while AHEL will remain the largest controlling shareholder with a minimum stake of 59.2 per cent.

Prathap C Reddy, Chairman, Apollo Hospitals Group”With Advent’s investment and the merger of KeyMed, the combined entity will be one of the country’s leading retail healthcare companies,” it said.

Sunita Reddy, Managing Director, AHEL, said, “The merger of Keimed is an important step in the integration of the broader supply chain. The combined entity will generate revenues of Rs 25,000 crore in three years with 7-8 per cent EBITDA.

Pankaj Patwari, Managing Director, Advent India, said, “We are striving to build India’s largest omnichannel health technology platform.”