M&A: Fortis to acquire 350 bedded Manesar unit of Medeor Hospital for Rs 225 Crores.
- Fortis Healthcare Limited announced that it has signed definitive agreements with the VPS Group for the acquisition of its Medeor Hospital in Manesar, Gurugram with potential bed capacity of 350 beds for an overall purchase consideration of INR 225 Crore.
- The transaction will be funded through a mix of debt and internal accruals.
About Fortis Healthcare Limited:
- Incorporated in 1996, Fortis Healthcare’s first facility became operational in Mohali, Punjab in 2001.
- Currently, Fortis operates 27 healthcare facilities (including JVs and O&M facilities). The Hospital’s network comprises approximately 4,300 operational beds and 400 diagnostics centres.
- On February 15, 2018, the shareholding of the erstwhile promoters, Mr. Malvinder Mohan Singh and Mr. Shivinder Mohan Singh, reduced to less than 1% after the Supreme Court allowed lenders to invoke the pledge against shares of FHL held as security.
- Thereafter, the bids were invited from investors. And, IHH became the new promoter, investing around Rs 4,000 Crore in the company against fresh issuance of around 31.1% stake.
About Medeor Hospitals Limited:
- Incorporated in 2004, Medeor Hospital Limited formerly named Rockland Hospitals.
- In 2016, the hospital got acquired by VPS healthcare group, Dubai, an integrated healthcare service provider with 24 operational hospitals, over 125 health centres, and medical support services spread across the Middle East, Europe, and India.
- Medeor Hospitals is a chain of multi-specialty hospitals strategically located in Delhi NCR at Qutab, Dwarka, and Manesar (Gurugram).
- This acquisition will make Fortis the second largest healthcare services provider in Gurugram with over 850 beds, including their ongoing brownfield bed additions in Fortis Memorial Research Institute (FMRI).
- The transaction entails the purchase of land, building and movable assets of the Hospital in Manesar, Gurugram, and is expected to close by end of July 2023, subject to the completion of certain conditions precedent as stipulated in the definitive agreements.
- FHL’s consolidated operating revenue rose by 42% to Rs 5,718 Crore on-year in FY22. This was driven by 37% growth in hospital business to Rs 4,264 Crores & 55% growth in diagnostics business to Rs 1,605 Crores.
- In FY22, the revenue growth in hospital business was owing to higher occupancy level at 63% and higher ARPOB at Rs 1.80 Crores.
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
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