Transaction:
- Ujala Cygnus, backed by PE firm General Atlantic announced a strategic partnership with Amandeep Hospitals to acquire a 60% controlling stake in Amandeep Hospitals, marking its entry into Punjab and expanding its presence in North India.
- According to certain media outlets, the deal value is estimated between Rs. 400–500 crore.
- The acquired hospitals will operate on an asset-light model, except for one or two units where Amandeep Hospitals already owns the building infrastructure.
About Amandeep Hospitals:
- Founded in 1990 by Dr. Amandeep Kaur and Dr. Avtar Singh, the chain operates 5 super-specialty hospitals with 800+ operational beds in the Punjab and Jammu & Kashmir region.
- Key specialties include orthopaedics, cosmetic surgery, anaesthesia, oncology, neuro and spine surgery, joint replacement and general medicines.
About Ujala Cygnus:
- Established in 2011, Ujala Cygnus runs hospitals across Tier-II and Tier-III cities in Haryana, Uttar Pradesh, Uttarakhand, J&K, and Delhi.
- Offers services across 30+ specialties with a team of over 300 doctors, focusing on quality care in underserved regions.
Rationale:
- The acquisition will expand Ujala Cygnus’ hospital network from 22 to 28 hospitals, increasing its total bed capacity from approximately 2,000 to nearly 2,800 beds.
- The deal consolidates Ujala Cygnus’ position as the largest private hospital network in the Jammu & Kashmir region.
- It marks Ujala Cygnus’ first foray into the Punjab healthcare market, adding five hospitals located in Amritsar, Pathankot, Firozpur, and Srinagar.
- The combined entity plans to deepen its presence in Punjab by exploring new facilities in Ludhiana, Jalandhar, Patiala, and the Tricity region.
- The group also aims to enhance its services by strengthening its focus on tertiary and quaternary care.
- In April 2024, General Atlantic PE firm acquired 70% stake in Ujala Cygnus valuing the hospital chain at an EV of Rs. 1600 Crores and providing a full exit to early investors including Eight Roads Ventures, Somerset Indus Capital, and Evolvence Capital.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
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