ABN AMRO Capital buys majority stake in Monash IVF

MELBOURNE (Reuters) - ABN AMRO Capital, the private equity arm of ABN AMRO AAH.AS, bought a controlling stake in Monash IVF, as part of a deal valuing the Australian group that pioneered test-tube babies at A$200 million ($175 million).

Monash IVF has research labs and treatment clinics in Australia, New Zealand, Sri Lanka and China.

All the Monash IVF doctors and specialists are staying with the group, with 12 doctors remaining as stakeholders alongside new chief executive Lou Panaccio, who came from Melbourne Pathology.

They did not disclose their exact stakes.

Michael Taranto, executive director of ABN AMRO Capital, said the fund was likely to hold its stake in Monash IVF for three to five years before cashing out of the investment, possibly through a share market listing.

He sees growth opportunities for the business based on the increasing number of couples putting off child birth and the growing acceptance of IVF treatment.

"The market for IVF is growing quite nicely on the back of demographic trends," Taranto told Reuters.

He also saw opportunities for expanding offshore, probably in Asia, through partnerships with local doctors.

(Reporting by Sonali Paul)