Fortis to acquire Manesar-based Medeor Hospital for Rs 225 crore

New Delhi: Fortis Healthcare on Thursday said it has inked a pact with the VPS Group to acquire Manesar-based Medeor Hospital for Rs 225 crore.

The healthcare major said it has signed definitive agreements to acquire Medeor Hospital for an overall purchase consideration of Rs 225 crore.

The hospital has a potential capacity of 350 beds and can be operationalised in a phased manner in around nine months, it added.

The deal entails the purchase of land, building and movable assets of Medeor 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, Fortis Healthcare said in a statement.

The company said the acquisition fits well with its strategic approach of expanding presence in focus geographic clusters, including Delhi-NCR.

The acquisition will enable the hospital chain to deliver services to patients in the upcoming areas of New Gurgaon, Dwarka Expressway and IMT Manesar, it added.

The hospital is easily accessible from these areas and can additionally benefit patients from across Rewari, Mahendragarh, Bhiwadi, Pataudi, Farukh Nagar and other areas in the vicinity, the healthcare provider stated.

"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," Fortis Healthcare MD & CEO Ashutosh Raghuvanshi said.

The company believes this is a good strategic fit as it already has a significant presence in Gurugram with its flagship facility Fortis Memorial Research Institute (FMRI), he added.

"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 endeavour 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," Raghuvanshi noted.

Fortis Healthcare shares were trading 0.34 per cent up at Rs 268.20 apiece on the BSE.