Fortis Healthcare to sell Vadapalani Chennai hospital to Kauvery Group
Fortis Healthcare, a healthcare delivery service provider in India, has declared the definitive sale of its hospital business operations located at Vadapalani, Chennai, to Sri Kauvery Medical Care (India) Limited (SKMC/Kauvery Group of Hospitals).
The total sale consideration amounts to INR 152 crores. Set as an all-cash deal, the transaction is projected to be finalized by the end of July 2023, contingent upon certain stipulated conditions in the definitive agreements.
The facility, established in October 2020 on leased premises, is strategically situated on the arterial Arcot Road. It currently offers 110 operational beds with the potential to upscale to around 200 beds. This divestment forms part of Fortis’ ongoing portfolio rationalization strategy, which focuses on fortifying its presence in specific geographic clusters where it already maintains a substantial foothold.
Dr S Chandrakumar — Kauvery Group of Hospitals Founder and Executive Chairman said: “We are focused on our growth plan to become a leading and trusted health care provider in South India. With this acquisition, we will have 750+ beds in Chennai.”
Simultaneously, Kauvery’s acquisition of the Vadapalani facility aligns with its strategic intent to broaden its reach in Chennai, supplementing its existing facilities of over 500 beds at Alwarpet & Radial Road.
Dr Ashustosh Raghuvanshi — Fortis Healthcare Managing Director and CEO said: “The divestment of Arcot Road hospital business operations is in line with our stated intent of optimizing our hospital assets keeping in mind our key markets and regions. This also underpins our focus on improving our overall profitability and margins in the segment, allowing us to re-allocate capital in our key clusters.”
Legal advice for Fortis was provided by Saraf and Partners, Law Offices, with financial advising from Veda Corporate Advisors. Kauvery received legal counseling from Khaitan & Co and Shardul Amarchand Mangaldas & Co for this transaction.