Transaction:
- Narayana Health, through its step-down subsidiary Narayana Hrudayalaya UK Ltd., acquired 100% equity of UK-based Practice Plus Group Hospitals from Bridgepoint for £188.78 million (Rs. 2,200 crore) in an all-cash deal.
- The transaction marks Narayana Health’s formal entry into the UK healthcare market, valued at 9.2x estimated FY25 EV/EBITDA on currently operational centres.
About Practice Plus Group Hospitals:
- Incorporated in 1997, Practice Plus Group operates 12 facilities in the UK, including 7 hospitals, 3 surgical centres, 2 urgent treatment centres, 3 musculoskeletal/diagnostic centres and 1 ophthalmology centre, with a total 330-bed capacity, specialising in orthopaedics, ophthalmology, and general surgery.
- The group performs 80,000 surgeries annually and generates £250 million in revenue, delivering a consistent 12% YoY growth over the past five years.
About Narayana Hrudayalaya Limited:
- Incorporated in 2000, the company operates 40 multi-specialty and super-specialty healthcare facilities across India and the Cayman Islands, including 19 hospitals, 2 heart centres, 18 clinics, and 1 hospital in the Cayman Islands, with a total of 5,789 operational beds.
- The group provides medical services across cardiac sciences, oncology, medicine & GI, renal, neurosciences, orthopedics, and other specialties, with a pan-India presence.
Rationale:
- The acquisition provides Narayana Health with entry into the UK healthcare market through 12 hospitals and surgical centres, including diagnostic and ophthalmology facilities.
- Narayana Health gains access to long-term NHS contracts, which contribute approximately 93% of Practice Plus’ revenue, ensuring stable and predictable cash flows.
- Practice Plus reported revenue of £250 million in FY25, up from £229 million in FY24, with adjusted EBITDA increasing from £16 million to £20 million, and profits showing similar growth.
- The acquisition expands Narayana Health’s presence in high-volume specialties such as orthopaedics, ophthalmology, and general surgery, which account for more than 50% of Practice Plus’ revenue.
- Practice Plus was previously acquired by Bridgepoint in 2010 as part of the Care UK healthcare division, providing an established operational platform.
- The deal aligns with UK healthcare trends, including a shift toward day-care procedures and higher private-pay penetration, where Practice Plus already has a strong presence.
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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