Fortis Healthcare Limited (FHL) has signed definitive agreements to acquire Shrimann Superspecialty Hospital in Jalandhar, Punjab, India.
The acquisition, from partnership company inter alia Shriman Enterprises through a slump sale, is part of FHL’s strategy to expand its network in the region and is expected to be completed by the end of March 2025.
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The all-cash transaction is valued at approximately Rs4.62bn ($53.26m) and does not include stamp duty and regulatory costs.
FHL CEO and managing director Dr Ashutosh Raghuvanshi said: “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.
“We believe this acquisition is a good strategic fit as we already have a significant presence in Punjab with approximately 800 beds across four facilities. The transaction will allow us to capitalise on market opportunities as we expand to more than 1,000 beds and further strengthen our market presence in the region.”
The acquisition, to be carried out by Fortis Hospotel Limited (FHTL), a wholly owned subsidiary of FHL, involves the hospital’s entire business operations, along with the underlying land.
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By GlobalDataAn additional land parcel for future expansion is also part of the deal.
This strategic acquisition aligns with FHL’s cluster-focused inorganic growth strategy.
Shrimann Hospital joins FHL’s existing facilities in Mohali, Amritsar, and Ludhiana, enhancing the healthcare services offered to patients in Jalandhar and the surrounding areas.
The multi-speciality hospital was commissioned in 2018 and currently operates 191 beds out of a potential 228, with the capacity to expand to more than 270 beds.
The acquisition of an adjacent 2.4-acre land parcel offers the potential to increase the capacity to over 450 beds.
Shrimann Hospital provides super-speciality services encompassing neurosciences, cardiac sciences, nephrology, general and laparoscopic surgery, oncology and gastroenterology.
The completion of the acquisition is subject to shareholder approval and customary closing adjustments, as outlined in the definitive agreements.
