Fortis Healthcare on Friday said it has signed definitive agreements for the acquisition of 228 bed Shrimann Superspecialty Hospital in Jalandhar, Punjab by way of a slump sale for Rs 462 crore in an all cash deal..
The acquisition cost Rs 462 crore excludes stamp duty and other regulatory costs) and shall be subject to customary closing adjustments as agreed in the definitive agreements.
The acquisition would be undertaken by FHL’s wholly-owned subsidiary Fortis Hospotel Limited (FHTL) and is subject to FHL shareholder approval.
As part of the transaction, FHTL would acquire the entire business operations, hospital building of Shrimann Hospital, as well as the underlying hospital land. In addition, an adjunct land parcel for possible future expansion is also being acquired.
The company said the acquisition is in line with the hospital chain’s cluster-focused inorganic growth strategy and further bolsters Fortis’ network in the state of Punjab.
Shrimann Hospital, Jalandhar adds to the company’s existing presence in the key cities of Punjab including Mohali, Amritsar and Ludhiana. The acquisition will enable the Fortis to scale up and further deliver healthcare services to patients in Jalandhar as well as in surrounding catchment areas.
Shrimann Hospital, is amongst the leading multi-specialty hospitals in Jalandhar, commissioned in 2018. The facility, built on 3 acres of land, has a capacity of 228 beds, with 191 beds currently operational with the capacity to add a further 45 beds taking the total potential bed capacity to over 270 beds. In addition, the acquisition of the adjunct land parcel of 2.4 acres provides an opportunity to add another 180 beds in the future taking the overall potential capacity to over 450 beds.
The facility is NABH accredited and offers a complete range of super specialties including the key specialties such as cardiac sciences, nephrology, general and laparoscopic surgery, oncology, neuro sciences and gastroenterology. For nine month ended December of FY25 the hospital is expected to generate revenues of Rs 154 crore with an EBITDA of Rs 36 crores.
The transaction is estimated to be consummated by the end of March 2025, subject to the completion of certain customary conditions precedent as stipulated in the definitive agreements.
“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,” said
Dr Ashutosh Raghuvanshi, MD & CEO of Fortis.
“We believe this acquisition is a good strategic fit as we already have a significant presence in Punjab with 800 beds across four facilities, the transaction will allow us to capitalize on market opportunities as we expand to more than 1000 beds and further strengthen our market presence in the region,” Raghuvanshi added.
