Fortis Healthcare to Sale of Vadapalani Hospital for INR 152 Crore
Fortis Healthcare Limited, a prominent healthcare company, has recently revealed its plans to sell its hospital business operations located in Vadapalani, Chennai. The definitive agreements for this sale have been signed with Sri Kauvery Medical Care (India) Limited for a total consideration of INR 152 crore. In an official communication, Fortis Healthcare disclosed that the transaction will be conducted entirely in cash and is expected to be finalized by the end of July 2023.
Ashustosh Raghuvanshi, the Managing Director & CEO of Fortis Healthcare Limited, expressed his views on the divestment of the Vadapalani Hospital business, stating, “The divestment of our Arcot Road hospital operations aligns with our strategic goal of optimizing our hospital assets, focusing on key markets and regions. This move also reinforces our commitment to enhancing overall profitability and margins in the segment, enabling us to reallocate capital within our primary clusters.”
Commenting on the acquisition, S Chandrakumar, the Founder & Executive Chairman of Kauvery Group of Hospitals, stated, “Our growth plan centers on becoming a leading and trusted healthcare provider in South India. With this purchase, our bed capacity in Chennai will exceed 750+.”
Meanwhile, S Manivannan, the Founder & Managing Director of Kauvery Group of Hospitals, emphasized, “Kauvery is dedicated to delivering best-in-class personalized care, upholding the highest standards of clinical excellence and ethical practices. This acquisition allows us to extend our services to more areas within Chennai.”
The completion of the transaction, subject to certain conditions outlined in the definitive agreements, is anticipated to take place by the end of July 2023. The facility, situated on a leased property, was established in October 2020 and is located on the prominent Arcot Road. Currently, it operates with 110 beds, with the potential to expand to approximately 200 beds.
Fortis’ decision to divest its Vadapalani facility aligns with its ongoing portfolio rationalization strategy, aiming to strengthen its presence in selected geographic clusters where it already holds a significant presence.
Kauvery’s acquisition of the Vadapalani facility is in line with its strategy to further expand its footprint in Chennai, in addition to its existing facilities with over 500 beds at Alwarpet and Radial Road.
About Fortis Healthcare:
Fortis Healthcare Limited, an Indian multinational private hospital chain, has its headquarters in India. The company initially launched its healthcare services in Mohali, Punjab, with the establishment of its first hospital.
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