Max Healthcare Institute Ltd has entered into a transaction that would give it control of Lucknow’s Sahara Hospital, a 550-bed facility, for a total consideration of ₹940 crore.
The acquisition marks Max Healthcare’s entry into Lucknow, one of the fastest-growing cities of Uttar Pradesh, it said.
The healthcare provider entered into a Share Purchase Agreement to acquire 100 percent stake of Starlit Medical Centre for an enterprise value of ₹940 crore through its wholly-owned subsidiary, Crosslay Remedies Limited (CRL). Starlit had entered into a Business Transfer Agreement with Sahara India Medical Institute Ltd to purchase the healthcare undertaking consisting of the Sahara Hospital, on a slump sale basis, Max Healthcare told the stock exchange.
The hospital is housed in a 17-storey building and offers multi-disciplinary care, including gastroenterology, neuro, surgery, cardiology, pulmonology and diagnostics, said a note from Max Healthcare. It also houses a nursing college. At present, the hospital serves about two lakh patients annually and has a renowned centre for neurosciences, said Max Healthcare, adding that its current operational bed capacity was about 250 beds, with an expected revenue of ₹200 crore in FY24.
Max Healthcare will bring its medical programmes, including oncology and organ transplants, besides strengthening existing programmes such as orthopaedics, cardiac sciences, neurosciences, and renal sciences.
Abhay Soi, Max Healthcare’s Chairman and Managing Director, said the acquisition was in line with their strategy to enter new Tier I / II cities that have a developed healthcare services ecosystem. “Given our track record of successful postmerger integration, we expect to quickly improve the operating and financial performance on the strength of medical excellence of our clinicians and continued patronage from our patients.” he added.
Crosslay Remedies owns and operates Max Super Speciality Hospital, Vaishali and Max Medical Centre, Noida. It was acquired by Max Healthcare in July 2015 as part of the acquisition of erstwhile Pushpanjali Crosslay Hospital, Vaishali, the company said.
In fact, Max Healthcare is concentrated in North India, with a network of 17 healthcare facilities. Of them, eight hospitals and four medical centres are located in Delhi and the NCR and the others are located in Mumbai, Mohali, Bathinda and Dehradun. The Max network also includes hospitals and medical centres owned and operated by them.