Fortis acquires 10 Wockhardt hospitals for Rs909 crore
24 August 2009
In the largest buyout deal in India's healthcare sector, hospital chain Fortis today announced the acquisition of 10 hospitals from Wockhardt for Rs 909crore. The deal is expected to be completed by the end of this year, Fortis said in a statement to the stock exchanges.
With this acquisition, Fortis India Ltd will have a capacity of 5,180 beds. The company currently operates 28 hospitals across the country, having bought Escorts in 2005 for around Rs585 crore.
''The coming together of three brands - Fortis, Escorts and now Wockhardt - will provide the needed impetus of taking healthcare delivery in our country to the next level,'' Fortis Healthcare Ltd managing director Shivinder Mohan Singh said.
Under the deal, Fortis will take over eight operating hospitals and two that are under construction from Wockhardt, adding 1,902 beds to the company's hospital capacity. The 10 hospitals are spread across three metros - two in Mumbai, five in Bangalore and three in Kolkata.
The acquisition will enhance Fortis' footprint in Southern, Western and Eastern India, the statement said.
Fortis Healthcare is promoted by the former owners of India's largest drug firm Ranbaxy. It has now acquired the cream of Wockhardt Hospital chain's assets – eight running hospitals and two green field projects. The price of Rs909 crore includes Rs190 crore towards capital work in progress for projects under construction.