Fortis Healthcare said it has signed definitive agreements with the VPS Group for the acquisition of its Medeor Hospital in Manesar, Gurugram for Rs 225 crore.
The hospital has a potential bed capacity of 350 beds and can be operationalized in a phased manner in a about nine months.
The transaction will be funded through a mix of debt and internal accruals.
This will be largest ever acquisition by Fortis following its acquisition of controlling stake by the Malaysia-based IHH Healthcare.
The transaction entails the purchase of land, building and movable assets of Medeor Hospital in Manesar, Gurugram, owned by Medeor Hospitals Limited and is expected to close by end of July 2023, subject to certain conditions precedent as stipulated in the definitive agreements.
Fortis said the acquisition fits well with the company’s strategic approach of expanding its presence in focus geographic clusters, including Delhi NCR.
The acquisition will enable the company to expand healthcare services to patients in the upcoming areas of New Gurgaon, Dwarka Expressway, IMT Manesar and National Highway 48. Along with additionally benefiting patients from across Rewari, Mahendargarh, Bhiwadi, Pataudi, Farukh Nagar and other areas in the vicinity.
“We have been evaluating various acquisition opportunities to expand our presence in our existing markets and to enable us to leverage the benefits of scale and synergies,” Dr Ashutosh Raghuvanshi, MD & CEO of Fortis said.
“This acquisition will make us the second largest healthcare services provider in Gurugram with over 850 beds, including our ongoing brownfield bed additions in FMRI,” Raghuvanshi said.
Raghuvanshi added the acquired hospital will offer the entire spectrum of medical specialties, supported by experienced team of clinicians.
Saraf and Partners, Law Offices, acted as legal advisors for the transaction and MediConsult Capital acted as transaction advisors for this transaction.