Fortis Healthcare (India) Ltd on Monday said it will buy Singapore-based Fortis Healthcare International Pte in an all-cash deal. The valuation will be advised by an independent valuation agency.
The company also announced that it will invest $1 billion over the next three years to expand its operations in India and globally.
The combined network will have over $1 billion revenue from 74 hospitals with more than 12,000 beds, 580 primary care centres, 188 day-care speciality centres, 190 diagnostic centres, 4,000 doctors and a base of over 23,000 employees.
“We expect to complete the consolidation by the end of December,” Mr Malvinder Mohan Singh, Chairman, Fortis Group, said. Fortis Healthcare's share price dropped 1.9 per cent to Rs 144.30 on the Bombay Stock Exchange at close on Monday.
The new management structure of the combined entity will be aligned to manage the global business of Fortis Healthcare, including India. Mr Malvinder Mohan Singh will be the Executive Chairman of Fortis Healthcare while Mr Shivinder Mohan Singh will be the Executive Vice-Chairman. Mr Vishal Bali will be the Global CEO of Fortis Healthcare.
The Indian operations will be headed by Mr Aditya Vij as its India CEO who will focus on the Indian expansion while the international business will be headed by Mr Eng Aik Meng and will focus on all expansions outside of India. Global functional heads will manage the key business functions of the combined entity.
“Through this integration, the combined entity will benefit from size and scale while at the same time leverage its network spread across various countries with wider service delivery capabilities. Its large pool of experienced clinical and managerial talent, under the guidance of a strong global management team, will help to cross-pollinate knowledge and capabilities across the entire platform,” said a press release.
The acquisition has been approved by the board of directors of Fortis Healthcare India. The board has also decided to change the name of Fortis Healthcare India to Fortis Healthcare Ltd.
Fortis now has 66 hospitals and 190 diagnostic labs across India. Fortis Healthcare International owns Quality Healthcare Ltd, a primary care network in Hong Kong with 580 centres; Dental Corporation Pty Ltd – a dental care network in Australia and New Zealand with 174 centres; Fortis Speciality Hospital, an under construction specialty hospital in Singapore; a stake in 350-bed Lanka Hospitals Corporation, and the largest private pathology laboratory in the UAE.
Further, it has recently announced the acquisition of a 65 per cent stake in Hoan My Medical Corporation, one of Vietnam's largest private healthcare provider groups with over 1,100 beds across six hospitals.
Mr Malvinder Mohan Singh, Group Chairman of Fortis Healthcare, said, “Our vision is to create a leadership position in integrated healthcare delivery in the pan Asia Pacific region. This integration is a fundamental step in that direction.”