Healthcare major Fortis on 20 December said it has signed an agreement to acquire the 125-bed Bengaluru-based People Tree Hospital for ₹430 crore.
Fortis will acquire the hospital in Yeshwanthpur, Bengaluru, by way of a 100% acquisition of People Tree Hospital's holding company TMI Healthcare Pvt Ltd. This would be undertaken by Fortis' wholly-owned subsidiary International Hospital Limited (IHL), it said in a statement.
Alvarez & Marsal was the financial advisor to People Tree Hospitals.
Fortis plans for expansion
The healthcare provider said an additional investment of ₹410 crore is planned over the next three years in the facility to further augment bed infrastructure, medical equipment and clinical programmes, including radiation oncology, it added.
The acquisition of the adjacent land parcel of 0.8 acres provides the company with the potential to expand bed capacity to over 300 beds, it stated.
“The acquisition is in line with our vision to expand our footprint in focused clusters and enables us to leverage the benefits of scale and synergies,” Fortis Healthcare MD and CEO Ashutosh Raghuvanshi stated.
Strategically important move
The acquisition is a strategically important addition and will further strengthen the company's position in the Bengaluru market, he added.
Fortis already has a significant presence with seven facilities in the city, with the potential to scale up to over 1,500 beds from 900 beds currently, Raghuvanshi said.
