Indian healthcare firm Fortis Healthcare has agreed to acquire Shrimann Superspecialty Hospital in Jalandhar, Punjab, in an all-cash transaction worth INR4.62bn ($53m).
Under the terms of the agreement, Fortis will acquire the hospital from inter alia Shriman Enterprises, by way of a slump sale.
The company would undertake the acquisition through its wholly owned subsidiary Fortis Hospotel Limited (FHTL), subject to its shareholders’ approval.
As part of the transaction, FHTL would acquire the entire business operations, the hospital building of Shrimann Hospital, along with the underlying hospital land.
The acquisition also includes an adjunct land parcel, which would support future expansion.
It is expected to be completed by March 2025, subject to customary closing conditions.
Fortis said the acquisition is in line with its strategy to strengthen its network in Punjab, where it already operates in key cities like Amritsar, Ludhiana, and Mohali.
It allows the company to enhance healthcare services in Jalandhar and surrounding areas.
MD and CEO Ashutosh Raghuvanshi said: “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 acquisition is a good strategic fit as we already have a significant presence in Punjab with ~800 beds across four facilities.
“The transaction will allow us to capitalise on market opportunities as we expand to more than 1000 beds and further strengthen our market presence in the region.”
Commissioned in 2018, Shrimann Hospital is a multi-speciality facility that currently operates with 191 beds with the potential to expand to over 270 beds.
The hospital covers three acres of area, and an adjacent 2.4-acre land parcel offers the opportunity to add more than 180 beds, increasing the total capacity to over 450 beds.
The facility is accredited by India’s National Accreditation Board for Hospitals & Healthcare Providers (NABH).
It offers super specialities, including cardiac sciences, nephrology, general and laparoscopic surgery, oncology, neurosciences, and gastroenterology.
