Fortis Healthcare Ltd said Thursday it has signed definitive agreements with the VPS Group to acquire the Medeor Hospital in Manesar, Haryana for Rs 225 crore ($27.4 million).
The hospital has a potential bed capacity of 350 beds and can be operationalized in a phased manner in around nine months, Fortis said in a statement.
The acquisition comes just days after Fortis unit SRL Diagnostics bought Lifeline Laboratory to expand its reach in the Indian pathology market.
Fortis, controlled by Malaysian hospital chain IHH Healthcare, said the latest transaction entails the purchase of land, building and movable assets of Medeor Hospital, owned by Medeor Hospitals Ltd. It will fund the transaction through a mix of debt and internal accruals.
The deal is likely to close by the end of July, subject to the completion of certain conditions precedent.
“We have been evaluating various acquisition opportunities to expand our presence in our existing markets and to enable us to leverage the benefits of scale and synergies. We believe this is a good strategic fit as we already have a significant presence in Gurugram with our flagship facility, Fortis Memorial Research Institute (FMRI),” said Dr Ashutosh Raghuvanshi, MD and CEO at Fortis Healthcare.
He added, “This acquisition will make us the second largest healthcare services provider in Gurugram with over 850 beds, including our ongoing brownfield bed additions in FMRI."
The company said the acquisition fits with its strategic approach of expanding its presence in focus geographic clusters, including Delhi-NCR.
The deal will enable Fortis to expand its services in the upcoming areas of New Gurgaon, Dwarka Expressway, IMT Manesar, and National Highway 48, the company said.
Fortis operates 27 healthcare facilities. Its network comprises about 4,300 operational beds and 400 diagnostics centres.
