New Delhi, July 10 -- Manipal Hospitals, the Ranjan Pai-led hospital chain controlled by Singapore state investment firm Temasek, has agreed to buy a majority stake in Sahyadri Hospitals from Canada's Ontario Teachers' Pension Plan (OTPP).
The acquisition of Pune-based Sahyadri Hospitals will add 11 hospitals and 1,400 beds to Manipal's network across Pune, Nashik, Ahilya Nagar and Karad, increasing Manipal's total number of hospitals to 49 and total bed count to about 12,000, making it one of India's largest hospital networks.
The announcement comes after VCCircle first reported in March this year that Manipal Health Enterprises Pvt Ltd, which operates Manipal Hospitals, was leading the race to pick up a stake in the Maharashtra-based Sahyadri Hospitals.
"This acquisition will strengthen our presence in western India, enabling us to extend world-class healthcare to more patients. It is a proud moment for us to have grown over time from a single hospital in Bengaluru in 1991 into one of the largest hospital networks," said Ranjan Pai, chairman at Manipal Education and Medical Group (MEMG).
Neither Manipal nor OTPP disclosed the financial terms of the transaction.
"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," said Deepak Dara, senior MD and head of India, Ontario Teachers'.
OTPP had picked up a majority stake in Sahyadri Hospitals in 2022. The Canadian pension fund invested around Rs 275 crore in Sahyadri after acquiring the company and made further investments to support its growth.
Earlier this year, Sahyadri bought a controlling stake in Ahmednagar-based Saideep Healthcare & Research Pvt Ltd to support its expansion plans, VCCircle reported earlier.
The hospital chain reported an 8.8% growth in consolidated revenue to Rs 813 crore for FY24 from Rs 748 crore in the preceding year. Its net profit rose to Rs 86 crore for FY24 from Rs 67.1 crore in the previous year.
Sahyadri was established in 2004 with its flagship hospital, Sahyadri Hospital-Deccan Gymkhana. The hospital chain offers a range of medical and surgical services, including cardiology, transplants, neurology, gastroenterology, orthopedics, critical care, mother and childcare, among other specialties.
Ontario Teachers' was advised by Jefferies and Alvarez & Marsal (financial), Latham & Watkins and Trilegal (legal), and EY (accounting, tax and commercial). Manipal was advised by Allegro Capital Advisors.
Published by HT Digital Content Services with permission from VC Circle.