INDIA – Fortis Healthcare Limited has reached a definitive agreement with VPS Group to acquire its Medeor Hospital in Manesar, Gurugram, Haryana for up to US$27.5 million (Rs. 225 Crores).
It comes as SRL Diagnostics, a subsidiary of Mumbai-listed hospital chain Fortis Healthcare, acquired Lifeline Laboratory to expand its reach in the Indian pathology market.
This strategic deal aligns with the IHH Healthcare-owned company’s strategic approach of expanding its presence in focus geographic clusters, including Delhi NCR.
In an official note, Fortis stated: “The acquisition will enable us to deliver quality healthcare services to patients in the upcoming areas of New Gurgaon, Dwarka Expressway, IMT Manesar, and National Highway 48.”
The acquisition is expected to close by end of July 2023, subject to the completion of certain conditions precedent as stipulated in the definitive agreements.
Saraf and Partners, Law Offices, acted as legal advisors for this transaction while MediConsult Capital acted as transaction advisors for this transaction.
Following the successful acquisition of Medeor Hospital, Fortis will take operational control of the upcoming 350-bed capacity hospital in Gurugram.
“The transaction entails the purchase of land, building, and movable assets of Medeor Hospital in Manesar, Gurugram, owned by Medeor Hospitals Limited,” the company said in a press release.
Medeor Hospitals integrate a team of highly specialized doctors, state-of-the-art technology, supreme healthcare practices, and warm compassionate patient care to provide the ideal healing environment for its patients.
Fortis will oversee the construction project to deliver a new Medeor Hospital in Manesar – which is expected to be operationalized in a phased manner in approximately 9 months.
Fortis cited that the Gurugram-based hospital will serve all patients in the upcoming areas of New Gurgaon, Dwarka Expressway, IMT Manesar, and National Highway 48.
In addition, this facility is expected to benefit patients living in neighbouring areas such as Rewari, Mahendargarh, Bhiwadi, Pataudi, and Farukh Nagar, just to name a few.
The hospital expansion project includes a 200-bed on-site extension, the inauguration of 5 new operation theatres, and the installation of advanced medical equipment and technology.
Commenting on the buyout deal of Medeor Hospital, Dr. Ashutosh Raghuvanshi, MD & CEO of Fortis Healthcare Limited stated: “We believe this is a good strategic fit as we already have a significant presence in Gurugram.”
He pointed out that upon completion of the infrastructure project, the Gurugram-headquartered hospital will complement their flagship facility, Fortis Memorial Research Institute (FMRI).
“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,” outlined Dr. Raghuvanshi.
He disclosed that Fortis is exploring various acquisition opportunities to expand its presence in its existing markets and to leverage the benefits of economies of scale and operational synergies.
“We endeavor to offer the entire spectrum of medical specialties at our new facility, ably supported by our experienced team of clinicians, and deliver exceptional clinical care,” asserted Dr. Raghuvanshi.
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