India’s second largest pathology laboratory chain Metropolis Healthcare is set to acquire Agra-based Scientific Pathology for an all-cash deal that would range between Rs 55-83 crore based on some revenue and Ebitda milestones.
The move aims to strengthen Metropolis’ position in the western Uttar Pradesh market where Scientific Pathology has a strong presence.
This is Metropolis’ second acquisition this year after it acquired Delhi NCR-based specialised cancer diagnostics player Core Diagnostics valuing it at Rs 246.8 crore.
With both acquisitions, the share of North in revenue will reach 13 per cent in FY26, compared to an 8 per cent now.
The acquisition would be made through Metropolis’ wholly-owned subsidiary Metropolis Clinical Pathology Private Limited. Under the agreement, Metropolis Clinical Pathology will acquire and operate all laboratories and collection centres of Scientific Pathology in Agra and neighbouring towns through a slump sale transaction.
Source: Business-Standard “The consideration for the acquisition will range between Rs 55 crore and Rs 83 crore, determined at 12.2-times of the adjusted Ebitda over a defined assessment period. The transaction will be executed through a Securities Subscription Cum Shareholders’ Agreement (SHA), backed by Metropolis Healthcare Limited. Upon completion, Metropolis Clinical Pathology will transition from a wholly owned subsidiary while continuing to be an integral part of the Metropolis Healthcare Group,” the company said in a statement.
Ashok Kumar Sharma-led Scientific Pathology was founded in 1984. Over the years it has built a strong direct-to-consumer presence, said Ameera Shah, Promoter and Executive Chairperson, Metropolis Healthcare.“Almost 90 per cent of their business is D2C and in Agra they are the market leaders as well. Sharma is a septuagenarian, and was looking for a strategic partner who can take his vision ahead, while maintaining the DNA of his pathology lab business,” Shah said. Sharma will continue to work in Metropolis’ leadership team to run the Agra and western UP business.
Scientific Pathology has three laboratories and eleven collection centres, including two NABL-accredited labs and recorded a turnover of Rs 26 crore in the financial year 2024 (FY24).
Shah further added that Metropolis has successfully executed over 20 strategic acquisitions, integrating leading B2C labs in key cities and transforming them into strong regional hubs for expansion.
“This approach has helped establish trusted consumer healthcare brands across multiple micro-markets in India. Scientific Pathology’s strong B2C focus and 40-year legacy align seamlessly with our vision to lead in these markets,” she said.
At the moment, West accounts for 56 per cent of Metropolis’ revenues, followed by South at 30 per cent, North at 8 per cent and East at 6 per cent.
“With North contribution currently at 8 per cent and post Core & Scientific acquisition it will be 13 per cent full year FY26,” Shah said.
She added that they will close the Core Diagnostics deal in another 10-12 days, and the Scientific Pathology deal should be done within 30-40 days or so.
Shah said that they are trying to create a “string of pearls” across North India where they go into cities and towns where they don’t have a strong consumer brand.
“We buy something or build it. We have these strong referral labs in Delhi, which provide all the specialised and super-specialised testing as a support to all of these labs across the North. So, we are quite hopeful about how the North will shape up for us in the coming few years,” she said.
Surendran Chemmenkotil, Chief Executive Officer, Metropolis highlighted that with an estimated market size of Rs 2000 crore, UP is one of North India’s fastest-growing diagnostic markets.
Metropolis has 8 labs and 80 collection centres in the region.
