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Fortis Healthcare Ltd, on Thursday, said it has signed definitive agreements with the VPS Group for the acquisition of its Medeor Hospital in Manesar, Gurugram, Haryana, at a cost of ₹225 crore.
The hospital has a “potential bed capacity” of 350 beds and can be operationalised in a phased manner in nine months.
The acquisition will be funded through a mix of debt and internal accruals.
“The transaction entails the purchase of land, building and movable assets of Medeor Hospital in Manesar,” the company said in a statement adding closure is expected by July-end, 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 and MediConsult Capital were transaction advisors.
Also read: Acquisition of Fortis was transformational for IHH in India, says Dr Kelvin Loh, MD and CEO
Fortis, in its statement, mentioned that the acquisition fits well with its “strategic approach” of expanding presence and focus on geographic clusters, including in the Delhi-NCR region.
The acquisition will enable the hospital greater access in upcoming areas of New Gurgaon, Dwarka Expressway, IMT Manesar and National Highway 48 with an additional catchment area for residents in Rewari, Mahendargarh, Bhiwadi, Pataudi, Farukh Nagar, etc.
Expanding presence
“We have been evaluating various acquisition opportunities to expand our presence in existing markets,” said Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare, adding, “We believe this is a strategic fit as we already have a significant presence in Gurugram with our flagship facility, Fortis Memorial Research Institute (FMRI).”
“The acquisition will make us the second largest healthcare services provider there with over 850 beds, including our ongoing brownfield bed additions in FMRI,” he added.
Also read: SRL completes acquisition of Lifeline Laboratory
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