Transaction:
- Fortis Healthcare Limited is set to acquire the 228-bed Shrimann Superspeciality Hospital in Jalandhar for approximately $53m (INR 462 crores) through a slump sale.
- The acquisition includes the entire business operations, hospital building, land, and an additional land parcel for future expansion.
- The transaction will be an all-cash deal for an overall purchase consideration.
About Shrimann Superspecialty Hospital:
- Established in 2018, located in Jalandhar, Punjab, is a multi-specialty hospital with a current capacity of 228 beds, with 191 beds operational.
- NABH accredited, offering key specialties such as Cardiac Sciences, Nephrology, General and Laparoscopic Surgery, Neuro Sciences, Oncology, and Gastroenterology.
- For FY 2024-25, the hospital is expected to generate INR 154 crores in revenue, with an EBITDA of INR 36 crores.
About Fortis Healthcare Limited:
- One of India’s leading integrated healthcare delivery service provider, with verticals comprising hospitals, diagnostics, and day care specialty facilities.
- The company operates 27 healthcare facilities (including JVs and O&M facilities) with around 4,700 operational beds and 405 diagnostics labs across the country.
Rationale:
- The acquisition will strengthen Fortis Healthcare’s presence in Punjab, expanding its network to over 1,000 beds across five facilities in the region.
- Fortis can leverage the hospital’s existing infrastructure and skilled workforce to improve patient care and operational efficiency.
- The addition of Shrimann Hospital aligns with Fortis’ cluster-focused inorganic growth strategy, allowing for better scalability and synergies.
- The hospital’s strong specialties in Cardiac Sciences, Oncology, and Gastroenterology will further diversify Fortis’ medical offerings in the region.
- The acquisition also provides an opportunity for future expansion, with the adjacent land parcel offering potential for adding 180+ more beds, raising overall capacity to over 450 beds.
- By entering the Jalandhar market, Fortis will tap into a broader catchment area, increasing its market share and positioning itself as a leading healthcare provider in northern India.
- In FY24, Shrimann Hospital reported a revenue of Rs. 137 Crore, marking an increase from Rs. 106 Crore in FY23 and Rs. 78 Crore in FY22.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
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