New Delhi, Dec. 22 -- Fortis Healthcare Ltd, one of India's largest hospital operators, has agreed to acquire Bengaluru-based People Tree Hospital, with plans to scale up the facility's infrastructure with additional investments.
The Mumbai-listed company said it has struck a deal to fully acquire TMI Healthcare Pvt Ltd, the parent of the 125-bed People Tree Hospital, via its wholly-owned subsidiary International Hospital Ltd.
As part of the transaction, Fortis will also acquire the hospital building and the underlying land from the promoters of TMI Healthcare, along with an adjacent land parcel from an independent third party, Fortis said in a stock exchange filing. The overall transaction consideration is for Rs 430 crore ($47.9 million), it added.
The deal is expected to be completed by the end of January 2026, subject to the completion of customary closing conditions.
The acquisition aligns with Fortis' cluster-focused growth strategy, under which it is expanding its footprint in key markets such as Bengaluru.
"The acquisition is a strategically important addition and will further strengthen our position in the Bengaluru market, where we already have a significant presence across seven facilities (including O&M facilities), with the potential to scale up to 1,500-plus beds from around 900 currently," said Ashutosh Raghuvanshi, managing director and CEO of Fortis Healthcare.
The acquisition of the adjacent land parcel of around 0.8 acres offers Fortis the opportunity to expand the hospital's bed capacity to more than 300 beds. An additional investment of Rs 410 crore is also planned over the next three years to further augment bed infrastructure, medical equipment and clinical programs, including radiation oncology, Fortis said.
Founded in 2013 by medical practitioners and husband-wife duo Upendra Kadluri and Jothi Neeraja, People Tree Hospital operates a 125-bed multi-specialty hospital in Yeshwanthpur, north-west Bengaluru. The hospital is located in a dense residential catchment with expanding commercial hubs in the vicinity and is well connected to major transportation hubs. It offers key specialties such as cardiac sciences, orthopedics, neurosciences, renal sciences and gastroenterology.
In November, the promoters of TMI Healthcare said they were facilitating the exit of BlackRock, which had invested Rs 210 crore in March in the group's promoter-owned entity, Hopkins Healthcare, through a non-convertible debenture (NCD) issue that included a greenshoe option.
For the financial year ended March 2025, the company saw a 0.5% drop in revenue to Rs 102 crore from Rs 102.5 crore a year ago, the filing said.
Published by HT Digital Content Services with permission from VC Circle.