Keimed, a wholesale pharmaceutical distribution company, announced merger with Apollo Health, a branch of Apollo Hospitals. The merger brings the total enterprise value of both companies to ₹22,481 crore. Apollo Health, an omnichannel healthcare service, plans to utilize Keimed’s extensive network, which includes over 70,000 pharmacies nationwide.
The merger process is set to occur gradually over the next twenty-four to thirty months. Apollo Health’s operations include supplying more than 6,000 pharmacies in over 1,100 cities, as well as running Apollo 24/7, a digital health platform that offers services like doctor consultations, home delivery of medicines, home diagnostics, management of chronic conditions, and insurance options.
Apollo Health also secured a binding agreement to raise ₹2,475 crore in equity capital from private equity firm Advent International. As reported by The Times of India, Advent will acquire a 12.1% ownership in the merged entity through investments in compulsory convertible instruments across two installments, with the merged entity valued at an enterprise value of ₹22,481 crore. In terms of valuation, Apollo Health is appraised at ₹14,478 crore, while Keimed has a valuation of ₹8,003 crore.
