Mumbai: Bangalore-based Manipal Hospitals has won the bid to acquire Sahyadri Hospitals, Maharashtra’s largest hospital chain, in a deal reportedly worth Rs.6,400 cr. The hospital group, currently owned by Canadian pension fund Ontario Teachers Pension Plan (OTPP), announced in a press release on July 9. Manipal hospitals successfully outbid Fortis, Malaysia-based IHH Healthcare and EQT partners for the Pune-based company’s 11 hospitals across Pune, Nashik, Ahilya Nagar and Karad, strengthening its position as the country’s second largest private healthcare provider.
Deepak Dara, Senior Managing Director for India, Ontario Teachers’ Pension Plan, said:
“Healthcare is a key investment theme for us globally and in India. Drawing on our global experience and playbook of investing in healthcare services, we saw the potential to build on Sahyadri’s strong brand to create a regional healthcare leader. Our partnership with Sahyadri over the past 3 years underscores our belief in India’s growing healthcare needs and our commitment to empowering local champions in delivering high-quality, accessible care. We wish the Sahyadri team continued success as they transition into their next phase.”
With this deal, the Canadian pension fund walks away with a 2.6x return on its investment in the hospital chain it acquired from Everstone in 2022. In three years, the OTPP has been credited with boosting the business by attracting medical talent in key specalities while also investing in boosting investments for specialised medical equipment, infrastructure and governance.
Manipal Hospitals, also known as Manipal Health Enterprises, has been on an aggressive acquisition spree lately, acquiring a majority stake in Kolkata-based AMRI Hospitals for Rs.2,400 cr in 2023 and another majority stake in Medica Synergie Hospitals in April this year. Backed by Singapore-based Temasek Holdings, these acquisitions will boost the company’s bed count to 12,000 with 49 hospitals.
Manipal Hospitals has almost finalised its IPO, due for the end of next year. The IPO is expected to be worth $1 billion, valuing the company at about $10 billion.
