Once complete, the acquisition will see Fortis expanding its presence in focus geographic clusters, including Delhi-NCR. The acquisition will enable the company to deliver quality healthcare services to patients in the upcoming areas of New Gurgaon, Dwarka Expressway, IMT Manesar and National Highway-48. The hospital is also expected to benefit patients from across Rewari, Mahendargarh, Bhiwadi, Pataudi, Farukh Nagar and other areas in the vicinity.
The company has signed definitive agreements with the VPS Group for the acquisition of its Medeor Hospital, which has a potential bed capacity of 350 beds and can be operationalised in a phased manner in about nine months, Fortis said in a statement.
Fortis currently operates 27 healthcare facilities (including JVs and O&M facilities) and has about 4,300 operational beds and 400 diagnostics centres within its existing network. It runs hospitals, diagnostics and daycare specialty facilities.
“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). 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. We endeavor to offer the entire spectrum of medical specialties at our new facility, ably supported by our experienced team of clinicians and deliver exceptional clinical care”, Dr Ashutosh Raghuvanshi, MD & CEO, Fortis Healthcare said.
The transaction entails the purchase of land, building and movable assets of Medeor Hospital in Manesar, Gurugram, owned by Medeor Hospitals Limited and is expected to close by end of July 2023, subject to the completion of certain conditions precedent as stipulated in the definitive agreements. The transaction will be funded through a mix of debt and internal accruals, the company stated.
Fortis registered a third quarter (Q3 FY2023) revenue of ₹1,560 crore, a growth of 6% over ₹1,467 crore consolidated revenues in the corresponding period of FY2022.