India's Max Healthcare to buy Sahara Hospital in $113 mln deal (updated)

Max Healthcare Institute

08/12/2023 11:27

(Adds details of the deal, recent hospital mergers in India)
       BENGALURU, Dec 8 (Reuters) - India's Max Healthcare
Institute  MAXE.NS  said on Friday it would buy Sahara Hospital
in Lucknow, Uttar Pradesh for an enterprise value of 9.40
billion rupees ($112.76 million), as it looks to expand its
operations in the country.
    The 550-bed Sahara Hospital treats about 200,000 patients
every year and has a revenue potential of 2 billion rupees for
fiscal 2024, Max Healthcare said in a statement.
    The company, which has 17 healthcare facilities mostly
concentrated in North India, said Sahara Hospital has the
potential to quickly ramp up beds and expand medical programs
such as oncology and transplants.
    Deals in Indian hospitals space have heated up, with mergers
and acquisitions totalling $4 billion in 2022 and $2.2 billion
in the first five months of this year.
    Global consultancy firm PwC projects 12%-14% annual growth
for the country's private healthcare market, which has seen a
post-pandemic boom.
    Indian hospital chain operator Manipal Hospitals in
September acquired an 84% stake in AMRI Hospitals in its bid to
expand its presence in eastern India, while private equity firm
Blackstone  BX.N  in October said it would buy a majority stake
in India's Care Hospitals.
    

($1 = 83.3650 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Nivedita
Bhattacharjee and Shilpi Majumdar)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))