Fortis Healthcare Acquires Shrimann Hospital in Jalandhar

Mumbai, Feb 14 (PTI) Fortis Healthcare (FHL) on Friday said it will acquire Shrimann Superspecialty Hospital in Jalandhar, Punjab, for Rs 462 crore through its wholly-owned subsidiary - Fortis Hospotel.

The healthcare company has signed definitive agreements for the acquisition of Shrimann Hospital from Shriman Enterprises (a partnership firm) by way of a slump sale, FHL said in a statement.

The acquisition would be undertaken by FHL's wholly-owned subsidiary Fortis Hospotel Limited (FHTL) and is subject to FHL shareholder approval.

As part of the transaction, FHTL would acquire the entire business operations, hospital building of Shrimann Hospital, as well as the underlying hospital land.

In addition, an adjunct land parcel for possible future expansion is also being acquired, it added.

The company further said that the transaction will be an all-cash deal for an overall purchase consideration of around Rs 462 crores (excluding stamp duty and other regulatory costs) and will be subject to customary closing adjustments as agreed in the definitive agreements.

The acquisition is in line with the company's cluster-focused inorganic growth strategy and further bolsters Fortis' network in the state of Punjab, it added.

The transaction is estimated to be consummated by the end of March 2025, subject to the completion of certain customary conditions precedent as stipulated in the definitive agreements.

"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," FHL MD and CEO Dr Ashutosh Raghuvanshi said.

The transaction will allow the company to capitalise on market opportunities as it expands to more than 1,000 beds and further strengthens its market presence in the region, he said.

"We endeavor to broaden and further strengthen the spectrum of the medical specialties at this facility and deliver exceptional clinical care ably supported by an experienced team of clinicians," Raghuvanshi added.