Warren Buffett-backed DaVita HealthCare Partners completes NephroLife Care buy for Rs 200 crore

BENGALURU: DaVita HealthCare Partners, a US-based kidney care services provider, has bought the remaining stake in NephroLife Care to complete its acquisition of the Bengaluru-based renal care services provider. DaVita, which is backed by billionaire Warren Buffett’s Berkshire Hathaway, has now invested a total of Rs 200 crore to acquire Nephro-Life, according to a person with direct knowledge of the transaction.
The Denver-headquartered firm with revenues of over $12 billion completed the acquisition by buying the equity stake belonging to serial entrepreneur Dev Kumar Roy and other angel investors. “I sold all the stake,” said Dev Kumar Roy, founder of NephroLife. He declined to reveal the financial terms of the transaction. “This is a new phase for DaVita in India. I am proud to have been part of a venture that is improving the quality of healthcare delivery for kidney patients in India,” said Roy, who has stepped down from the board of the company.

In 2011, DaVita picked up a significant stake in NephroLife by investing $25 million along with global investment firm New Enterprise Associates (NEA). The division of DaVita in the country has subsequently changed its name from DaVita Nephrolife (India) to DaVita Care (India). NEA still remains an investor in the firm.

“Dev (Kumar Roy) and team have been instrumental in giving life to our vision of delivering quality care to chronic kidney disease patients in India,” said Shriram Vijayakumar, MD of DaVita India. “We are thankful for his support over the last five years and wish him the best in his other endeavours.” DaVita has provided administrative services at 2,239 outpatient dialysis centres worldwide serving approximately 1,76,500 patients.

With over 200,000 new end-stage renal disease (Esrd) patients being added each year, India offers dialysis providers and equipment manufacturers enormous growth potential, according to Research and Markets. Growing annually at around 16%, the market for hemodialysis machines, dialyzers, blood tubing sets, dialysate and other solutions is expected to be valued at $287 million in 2018.

“India plays an integral role in our growth plans in Asia-Pacific and we are committed to continue driving qualitative improvements in healthcare through our investments,” said Atul Mathur, president of DaVita HealthCare Partners in the Asia-Pacific region.