Fortis Healthcare to Acquire Shrimann Superspecialty Hospital in Jalandhar!
Gurugram, February 14, 2025: Fortis Healthcare Limited (“FHL” or “Fortis” or the “Company”), a prominent player in India’s healthcare sector, has announced the signing of definitive agreements for the acquisition of Shrimann Superspecialty Hospital located in Jalandhar, Punjab (“Shrimann Hospital”). This acquisition is being conducted through a slump sale from Shriman Enterprises, a partnership firm. The transaction will be executed by FHL’s wholly-owned subsidiary, Fortis Hospotel Limited (FHTL), and is contingent upon approval from FHL’s shareholders.
Under the terms of the agreement, FHTL will acquire the complete business operations, the hospital building, and the land on which Shrimann Hospital is situated. Additionally, an adjacent land parcel is included in the acquisition for potential future expansion.
The deal is structured as an all-cash transaction with a total purchase consideration of approximately INR 462 Crores, excluding stamp duty and other regulatory expenses, and will be subject to standard closing adjustments as stipulated in the definitive agreements.
This acquisition aligns with the Company’s strategy for inorganic growth focused on cluster development and enhances Fortis’ presence in Punjab. The addition of Shrimann Hospital in Jalandhar complements the Company’s existing facilities in key Punjab cities such as Mohali, Amritsar, and Ludhiana. This move will allow Fortis to expand its capacity and improve the quality of healthcare services available to patients in Jalandhar and its surrounding areas.
Shrimann Hospital, established in 2018, is recognized as one of the leading multi-specialty hospitals in Jalandhar. The facility spans approximately 3 acres and currently operates 191 out of a total of 228 beds, with the potential to increase capacity by an additional 45 beds, bringing the total to over 270 beds. Furthermore, the acquisition of the adjacent land parcel, approximately 2.4 acres in size, presents a significant opportunity to add more than 180 beds in the future, potentially increasing the overall capacity to over 450 beds.
To enhance its presence in the Punjab market, Fortis Healthcare is poised to acquire Shrimann Superspeciality Hospital in Jalandhar, which has a capacity of 228 beds, for a total consideration of Rs 462 crore. This acquisition will increase Fortis’s bed count in the Punjab cluster to over 1,000.
The transaction is structured as an all-cash deal through a slump sale. This strategic move is intended to bolster the hospital chain’s footprint in Punjab, where it currently operates four facilities with a total of 772 beds. Fortis has two hospitals in Ludhiana and one each in Amritsar and Mohali. The facility being acquired has 191 operational beds out of its total capacity of 228, with the potential to expand to over 270 beds. Furthermore, the acquisition includes an adjacent land parcel of approximately 2.4 acres, which presents an opportunity to add an additional 180 beds in the future, potentially raising the overall capacity to 450 beds, according to Fortis.
Ashutosh Raghuvanshi, the managing director and chief executive officer of Fortis Healthcare, described the acquisition as a strategically advantageous move, given Fortis’s existing substantial presence in Punjab with around 800 beds across its facilities.
“This transaction will enable us to seize market opportunities as we expand beyond 1,000 beds and further solidify our market position in the region,” he remarked.
The acquisition will be executed by Fortis’s wholly owned subsidiary, Fortis Hospital Limited (FHTL), pending approval from shareholders.
According to a regulatory filing, FHTL will take over the complete business operations and hospital infrastructure of Shrimann Hospital, including the associated land. Furthermore, an additional land parcel is being acquired for potential future expansion. The completion of this transaction is anticipated by the end of March 2025.
The NABH-accredited facility currently provides a comprehensive array of super specialties, such as cardiac sciences, nephrology, general and laparoscopic surgery, oncology, neurosciences, and gastroenterology. Raghuvanshi indicated that Fortis has been exploring various acquisition opportunities to enhance its market presence and capitalize on the advantages of scale and synergies.
Over the past three to four years, Fortis has engaged in smaller acquisitions to increase its bed capacity. Notably, it acquired a 350-bed hospital in Manesar, Haryana, and a full stake in Artistery Properties, which includes a land parcel adjacent to Fortis’s Anandpur facility in Kolkata during FY24.
Currently, Fortis operates 27 healthcare facilities, including joint ventures and operations and maintenance (O&M) units, with approximately 4,700 operational beds throughout India. In the last three financial years, the Delhi-based hospital chain has added nearly 1,000 beds, with the company reporting 3,881 operational beds in its investor presentation for Q3FY22. Most of this growth has been achieved through capacity enhancements in existing facilities.
