Corporate Watch

Fortis Acquires 10 Hospitals

The purchase includes 8 operating hospitals & two under construction hospitals

Malvinder Singh, Shivinder Singh & Habil Khorakiwala

Fortis Healthcare Limited and Wockhardt Hospitals Limited recently announced execution of a definitive agreement providing for purchase of eight operating hospitals and two hospital projects under construction. The purchase would be for Rs 909 crore and this includes Rs 190 crore towards capital work in progress for projects under construction. The business transfer is expected to be completed by end of December 2009 upon the fulfilment of agreed conditions precedent.

This makes it the largest deal in the healthcare sector till date. The acquisition will enhance Fortis' footprint in Southern, Western and Eastern India, thereby strengthening the Fortis brand as one of the leading healthcare service providers in the country.

The 10 hospitals are spread across metros in three states (two in Mumbai, five in Bengaluru, and two in Kolkata) and will provide Fortis a pan India presence consistent with its stated strategy. This acquisition will augment the bed capacity by 1,902 beds (including 534 beds in two greenfield projects). With this acquisition, the aggregate bed capacity of the Fortis Network shall stand at 5,180 beds spread over 38 hospitals.

Religare Capital Markets Limited has been the advisors to Fortis Healthcare Limited in this deal.

Said Malvinder Mohan Singh, Group Chairman, Fortis and Religare Enterprises,"Post consummation of this deal, Fortis will rank as the leading private healthcare provider in several key states in India, including Delhi, Maharashtra, Karnataka, Punjab, Haryana, Rajasthan and Uttar Pradesh. It will also have a unique distinction of getting under its umbrella some of the respected healthcare brands in the country viz. Fortis, Escorts and now Wockhardt Hospitals." Post this acquisition, Fortis' will have a talent pool of 9,250 personnel including over 1,575 doctors and 5,000 nurses and para-medics.

Said Shivinder M Singh, MD, Fortis, "We are delighted with this acquisition as it marries a common value system, beliefs and competencies of delivering the best quality clinical and patient care to benefit people across India. The coming together of three leading brands; Fortis, Escorts and now Wockhardt, will provide the needed impetuous of taking healthcare delivery in our country to the next level. We are very excited about the continuity of the current Wockhardt team to work along with us to take the combined entity to further heights. We welcome them all to the Fortis family."

EH News Bureau