Business

Fortis Healthcare Acquires Jalandhar-Based Shrimann Superspecialty Hospital for Rs 462 Crore

This move aligns with Fortis Healthcare’s strategic approach to inorganic growth, strengthening its footprint in Punjab. The integration of Shrimann Hospital enhances Fortis' presence in the state, complementing its existing facilities in Mohali, Amritsar, and Ludhiana. This expansion is expected to enhance healthcare accessibility for patients in Jalandhar and its surrounding regions.

• By Newsdesk
• New Delhi
• Feb 15, 2025

Business

Fortis Healthcare has announced a significant expansion with the acquisition of Shrimann Superspecialty Hospital, a 228-bed facility in Jalandhar, Punjab. The deal, valued at Rs 462 crore, will be executed through a slump sale in an all-cash transaction, subject to customary closing adjustments as per the definitive agreements.

The acquisition, facilitated by Fortis Healthcare's wholly-owned subsidiary, Fortis Hospotel Limited (FHTL), is pending approval from the company's shareholders. Under the terms of the agreement, FHTL will assume full control of Shrimann Hospital’s business operations, including the hospital building and underlying land. Additionally, the deal includes an adjacent land parcel earmarked for potential future expansion.

This move aligns with Fortis Healthcare’s strategic approach to inorganic growth, strengthening its footprint in Punjab. The integration of Shrimann Hospital enhances Fortis' presence in the state, complementing its existing facilities in Mohali, Amritsar, and Ludhiana. This expansion is expected to enhance healthcare accessibility for patients in Jalandhar and its surrounding regions.

Established in 2018, Shrimann Superspecialty Hospital spans three acres and has a current operational capacity of 191 beds, with the potential to increase to over 270. Furthermore, the additional 2.4-acre land parcel provides scope for an expansion of 180 more beds, bringing the total future capacity to over 450 beds. The facility holds NABH accreditation and offers a comprehensive range of super-specialty services, including cardiac sciences, nephrology, oncology, neurology, gastroenterology, and general surgery.

For the nine-month period ending December in FY25, Shrimann Hospital is projected to generate revenue of Rs 154 crore, with an EBITDA of Rs 36 crore. The transaction is expected to be finalized by March 2025, contingent on the completion of stipulated conditions in the definitive agreements.

Commenting on the acquisition, Dr. Ashutosh Raghuvanshi, MD & CEO of Fortis Healthcare, stated, "We have been actively exploring opportunities to strengthen our presence in key markets. This acquisition aligns perfectly with our growth strategy, enhancing our ability to leverage scale and operational synergies."

He further added, "With our existing network in Punjab comprising 800 beds across four facilities, this acquisition will push our capacity beyond 1,000 beds, reinforcing our market leadership in the region."

As Fortis Healthcare continues to expand, this strategic acquisition is set to further solidify its position as a leading healthcare provider in North India.