Novo Holdings, a 142 billion euro investment firm that controls Danish drug maker Novo Nordisk, has acquired a 49% stake in Maharashtra-headquartered Surya Hospitals at a valuation of Rs 1,000-1,200 crore, according to sources familiar with the matter.
The transaction was disclosed via a press release on Tuesday that did not divulge financial details.
The deal signals a continued trend of investment activity in the hospitals sector where merger and acquisitions worth over Rs. 10,000 crore were struck last year, as per industry watchers.
“Specialised healthcare delivery is a key focus for Novo Holdings in India, particularly in areas where clinical quality and outcomes are paramount. Surya Hospitals has built an exceptional reputation over decades for excellence in women’s and children’s care, underpinned by outstanding doctors and strong clinical outcomes,” said Amit Kakar, managing partner and head of Asia at Novo Holdings.
ET had first reported on 16 September that Novo Holdings had entered exclusive discussions to buy the Surya Hospitals stake.
The stake is said to have been purchased from SCP Investments which is run by former KKR India private equity head Heramb Hajarnavis.
The pediatric hospital chain was founded by medical practitioner Bhupendra Avasthi.
“Structural trends such as urbanisation and rising maternal age are reshaping healthcare delivery, and we believe platforms like Surya Hospitals, with deep clinical expertise and a focused care model, are well positioned to meet these evolving needs at scale,” said Navjeewan Khosla, partner, Novo Holdings Asia.
Surya Hospitals has facilities in Mumbai, Pune and Jaipur as per its website.
JM Financial was the transaction advisor. Trilegal acted as legal counsels for Novo Holdings.
“This partnership will support our growth ambitions while reinforcing our commitment to delivering the highest standards of care for women and children, led by some of the best clinicians in the country,” said Bhupendra Avasthi, chairman and managing director, Surya Hospitals.
Recently, Ranjan Pai-led Manipal Hospitals bought out Ontario Teachers Pension Plan-owned Sahyadri Hospitals for Rs. 6,400 crore paying over 30 times that company’s operating profits for the acquisiton. Several players including Blackstone-backed Aster DM healthcare, Fortis Hospitals, Carlyle and EQT Partners were in competition to acquire Sahyadri.
US private equity firm KKR acquired a controlling stake in Kerala-based Baby Memorial Hospital for Rs. 2,000 crore in July 2024. Baby Memorial has a single speciality focus like Surya and focuses on pediatric care.
Baby Memorial is the frontrunner to acquire Hyderabad-based Star Hospitals, ET reported on 26 November last year as it looks to expand its footprint in southern India.
In other mergers and acquisitions in the sector Blackstone merged its hospitals platform Quality Care with Aster DM Healthcare in November 2024.
Source: Economic Times