Daijiworld Media Network - Bengaluru
Bengaluru, Dec 20: Healthcare major Fortis on December 20 announced that it has signed a definitive agreement to acquire the 125-bed People Tree Hospital in Bengaluru for Rs 430 crore, strengthening its footprint in the city’s healthcare market.
Fortis said the acquisition of the Yeshwanthpur-based hospital will be carried out through a 100 per cent purchase of People Tree Hospital’s holding company, TMI Healthcare Pvt Ltd. The transaction will be executed by Fortis’ wholly owned subsidiary, International Hospital Limited (IHL).
In a statement, the company said it also plans to invest an additional Rs 410 crore over the next three years to further enhance the facility’s bed capacity, medical equipment and clinical programmes, including radiation oncology.
The acquisition also includes an adjacent land parcel measuring 0.8 acres, which provides Fortis the potential to expand the hospital’s bed strength to over 300 beds in the future.
“The acquisition is in line with our vision to expand our footprint in focused clusters and enables us to leverage the benefits of scale and synergies,” Fortis Healthcare Managing Director and CEO Ashutosh Raghuvanshi said. He added that the deal is a strategically important addition that will further strengthen Fortis’ position in the Bengaluru market.
Fortis already has a significant presence in the city with seven healthcare facilities. According to Raghuvanshi, the company has the potential to scale up its capacity in Bengaluru to over 1,500 beds from the current 900 beds.
Alvarez & Marsal acted as the financial advisor to People Tree Hospitals for the transaction.