CHENNAI: Sri Kauvery Medical Care India has signed an agreement to acquire the hospital business of Fortis Healthcare at Vadapalani in Chennai for Rs 152 crore, in an all-cash deal. It is expected to be completed by the end of next month, according to a filing in the stock exchanges by Fortis.
Divestment is a part of the Fortis’ ongoing portfolio rationalisation strategy in order to focus on deepening its presence in select geographic clusters where it has a sizable presence, the company said. “This underpins our focus on improving our overall profitability and margins in the segment,” said Dr Ashustosh Raghuvanshi, managing director of Fortis Healthcare was quoted as saying.
The Vadapalani facility has 110 beds and has the capacity of expanding up to 200 beds, along with its existing facilities at Alwarpet and Radial Road, Kauvery Hospitals now has about 750 beds in Chennai. With this acquisition of the facility at Vadapalani, Kauvery Hospitals will be the 2nd largest hospital chain in Chennai. The hospital chain wants to ramp up to 1000 beds in Chennai in the next 18 months.
Speaking to TNIE, Dr Chandrakumar, Founder and Chairman of Kauvery Hospitals Group said, “Fortis has their reasons for rationalisation and it suited our purpose. There were multiple bidders and we emerged successfully.”