STS Hospitals Group gets acquired by Evercare Group

o3 Capital was the sole financial advisor to STS Hospitals Group and its shareholders for the transaction

Evercare Group, CDC Group, STS Hospitals Group, Bangladesh, STS Group, Bob Kundanmal, STS Hospitals, O3 Capital, Mohit Khullar

Evercare Group (led by The Rise Funds’ Evercare Health Fund), the leading integrated healthcare delivery network across Africa & South Asia has acquired a controlling stake in our client, STS Hospitals Group (“STS”).

The transaction included financing by the CDC Group, the leading impact investor & Development Finance Institution owned by the UK Government. o3 Capital was the sole financial advisor to STS Hospitals Group and its shareholders for the transaction.

STS operates a premier 425-bed super-specialty tertiary care hospital in Dhaka, Bangladesh. Backed by the STS Group, one of the largest corporate houses in Bangladesh, it is the first and the only JCI accredited hospital in the country. Since commencement of operations in 2005, the hospital has served over 2.5 million patients across 29 specialties. As part of its growth plans, STS is setting up a second state-of-the-art 400-bed tertiary care hospital at Chittagong, that is expected to commence operations in 2020.

“Evercare and CDC will provide the expertise and resources required to strengthen our model and drive enhanced specialist services and quality health outcomes in the underserved market in Bangladesh”, said Bob Kundanmal, Chairman of STS Hospitals.

“We believe this partnership will be highly synergistic, with STS benefiting from Evercare's expertise in scaling up healthcare businesses and driving value creation in emerging markets. The Evercare platform will also gain a strong foothold in the under-served Bangladesh market by partnering with one of the largest healthcare providers in the country”, said Mohit Khullar, Director and Healthcare Lead at o3 Capital.

With this closure, o3 Capital has successfully closed 155 transactions aggregating to USD 5.8bn in the last 13 years across verticals and product groups. The deal reiterates o3 Capital’s strong delivery credentials in the healthcare space and reinforces our ability in consummating cross border transactions.

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