New Delhi, Oct. 31 -- Narayana Hrudayalaya Ltd, which runs a network of multispecialty hospitals under the Narayana Health brand, has inked a deal to acquire a British secondary care provider.

The Mumbai-listed hospital operator said it will fully acquire UK's Reading-headquartered Practice Plus Group Hospitals Ltd, owned by private equity group Bridgepoint, for a sum of 188.78 million pounds (Rs 2,202 crore or $248 million), according to an exchange filing.

This is part of Narayana's strategy of expanding its international footprint and marking its entry into a "mature" UK market, which is now seeing a shift towards day care procedures and increased penetration of private pay, it said in an exchange filing.

Incorporated in 1997, Practice Plus is a hospital operator offering secondary care and operating a network of seven hospitals, three surgical centers, two urgent treatment centers, three musculoskeletal or diagnostic centers, one ophthalmology center with 330 bed capacity. The company has committed contracts with UK National Health Services (NHS) and touts to be the fourth largest NHS healthcare service provider in the island nation.

Allegro Capital acted as the sole financial advisor to Narayana Health.

As per filings, Practice Plus has grown 12% on a year-on-year basis over the last five years. In the financial year ended September 2025, the company is estimated to have reported revenue of 250 million pounds, versus 229 million pounds in the fiscal year ended September 2024, implying over 9% growth.

It has a total bed capacity of 330 in-patient and out-patient beds, with a staff strength of 2,500 full-time equivalents as of year ended September 2024 of which about 1,300 employees are doctors and clinical staff.

The deal implies 9.2 times estimated FY25 EV multiple on currently operational centers, the filing showed.

Practice Plus has a contract with the NHS for a duration of more than 10 years. As per the filings, the company derives 93% of its revenue from NHS contracts, while the rest is from individuals. Almost all of its revenue volumes are derived from the NHS, with more than half of its revenue generated from orthopaedic and ophthalmology treatments.

Published by HT Digital Content Services with permission from VC Circle.