INDIA – Max Healthcare Institute Ltd is acquiring Lucknow’s Sahara Hospital for up to US$113 million (₹940 crores) as the healthcare provider plans to expand its footprint in Tier 1 and Tier 2 cities of India.
In a press release published by Reuters, Abhay Soi, Chairman and Managing Director of Max Healthcare, said: “We are excited about this acquisition, which is in line with our strategy to enter new Tier I / II cities that have a developed healthcare services ecosystem.”
As specified in the US$113M transaction, Max Healthcare will gain full control of Sahara Hospital, a tertiary care private hospital situated in the capital city of the Indian state of Uttar Pradesh.
In addition to housing a nursing college, Lucknow’s Sahara Hospital offers multi-disciplinary care, including gastroenterology, neuro, surgery, cardiology, pulmonology, and diagnostics.
Sahara Hospital reportedly serves about 200,000 patients annually. Moreover, the Lucknow-based facility has a renowned center for neurosciences.
The acquisition of this 550-bed facility marks Max Healthcare’s entry into Lucknow, one of the fastest-growing cities in the northern Indian state.
Commenting on the proposed deal, Abhay Soi reflected: “Given our track record of successful post-merger integration, we expect to quickly improve the operating and financial performance on the strength of medical excellence of our clinicians and continued patronage from our patients.”
Starlit Medical Centre struck a Business Transfer Agreement with Sahara India Medical Institute Ltd to purchase the healthcare undertaking consisting of the Sahara Hospital, on a slump sale basis.
Consequently, Max Healthcare is set to acquire a 100 percent stake in Starlit Medical Centre for an enterprise value of US$113M (₹940 crores) through its wholly-owned subsidiary, Crosslay Remedies Limited.
It is worth highlighting that Crosslay Remedies Limited owns and operates Max Super Speciality Hospital, Vaishali, and Max Medical Centre, Noida.
It was acquired by Max Healthcare in July 2015 as part of the acquisition of erstwhile Pushpanjali Crosslay Hospital, Vaishali.
Upon completion of the newly signed acquisition deal, Lucknow’s Sahara Hospital stands to not only expand its bed capacity but also gain a competitive advantage in domestic markets.
Max Healthcare will bring its medical programmes, including oncology and organ transplants, besides strengthening existing programmes such as orthopaedics, cardiac sciences, neurosciences, and renal sciences.
Moreover, this landmark deal follows the launch of Max Healthcare’s Chimeric Antigen Receptor (CAR)-T Cell Therapy, which will be available at all its hospital in Delhi-NCR.
The introduction of CAR-T Cell Therapy at Max Healthcare marks a significant leap in the healthcare provider’s commitment to providing cutting-edge care for cancer patients.