The transaction will be an all-cash deal and is estimated to be consummated by the end of July 2023
Fortis Healthcare, a leading integrated healthcare delivery service provider in India, announced the signing of definitive agreements for the sale of its hospital business operations at Vadapalani, Chennai to Sri Kauvery Medical Care (India) (SKMC / Kauvery Group of Hospitals), for a sale consideration of Rs 152 Crore.
The transaction will be an all-cash deal and is estimated to be consummated by the end of July 2023, subject to certain conditions as stipulated in the definitive agreements.
The facility, which is on leased premises, was commissioned in October 2020 and is located on the arterial Arcot Road. It currently has 110 operational beds with the potential to scale up to approx. 200 beds.
The aforesaid divestment is a part of Fortis’ ongoing portfolio rationalisation strategy to focus on deepening its presence in select geographic clusters where it has a sizeable presence.
The acquisition of the Vadapalani facility is in line with Kauvery’s strategy to further expand its presence in Chennai, in addition to its existing facilities of 500+ beds at Alwarpet & Radial Road.
Dr Ashustosh Raghuvanshi, MD and CEO, Fortis Healthcare, “The divestment of Arcot Road hospital business operations are in line with our stated intent of optimising our hospital assets keeping in mind our key markets and regions. This also underpins our focus on improving our overall profitability and margins in the segment, allowing us to re-allocate capital in our key clusters.”
