Fortis Healthcare Ltd., one of India's leading chain of private hospitals with a network of 28 hospitals (including 12 satellite and heart command centers) and Wockhardt Hospitals Limited today announced the execution of a definitive agreement providing for purchase of eight operating hospitals and two hospital projects under construction.
The business transfer is expected to be completed by end of December 2009 upon the fulfillment of agreed conditions precedent.
This makes it the largest deal in the healthcare sector till date. Prior to this deal, the largest healthcare acquisition was of Escorts Heart Institute, also acquired by Fortis Healthcare ltd in the year 2005.
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.
Malvinder Mohan Singh, Group Chairman Fortis and Religare Enterprises said: "This landmark deal is an important milestone in the history of Indian healthcare as it brings together two leading brands to create a national healthcare delivery network. This partnership will enable the vast pool of medical talent and quality healthcare infrastructure under the Fortis network to deliver a superior value proposition to the citizens of our country! "
The ten hospitals are spread across metros in three states (two in Mumbai, five in Bengaluru and three in Kolkata) and will provide Fortis a pan India presence consistent with its stated strategy.
This acquisition will augment the bed capacity by 1902 beds (including 534 beds in 2 Greenfield projects). With this acquisition, the aggregate bed capacity of the Fortis Network shall stand at ~ 5180 beds spread over 38 hospitals.
Religare Capital Markets Limited has been the advisors to Fortis Healthcare Limited in this deal.
Post this acquisition, Fortis' will have a talent pool of 9250 personnel including 1575 plus doctors and 5000 nurses and paramedics.
Fortis will now have three hospitals with the coveted international accreditation by the JCI (Joint Commission International).