Fortis Healthcare share price rises on deal to acquire Bengaluru-based People Tree Hospital for ₹430 crore

The stock is trading 2.11% higher at ₹909.70 per unit on the National Stock Exchange (NSE) at 1:42 pm.

In an exchange filing on December 20, the company said it has signed definitive agreements for the acquisition of the 125-bed hospital in Bengaluru's Yeshwanthpur by way of a 100% acquisition of TMI Healthcare Pvt Ltd, the entity under which the People Tree Hospital business operates.

The said acquisition would be undertaken by Fortis Healthcare's wholly owned subsidiary International Hospital Limited (IHL), it said in a statement.

The healthcare provider said an additional investment of ₹410 crore is planned over the next three years in the facility to further augment bed infrastructure, medical equipment and clinical programmes, including radiation oncology, it added.

The acquisition of the adjacent land parcel of 0.8 acres provides the company with the potential to expand bed capacity to more than 300 beds, it stated.

The NABH-accredited hospital offers key specialities such as orthopaedics, cardiac sciences, neurosciences, gastroenterology and renal sciences.

"The acquisition is in line with our vision to expand our footprint in focused clusters and enables us to leverage the benefits of scale and synergies," Fortis Healthcare MD and CEO Ashutosh Raghuvanshi stated.

The acquisition is a strategically important addition and will further strengthen the company's position in the Bengaluru market, he added.

Fortis already has a significant presence with seven facilities in the city, with the potential to scale up to over 1,500 beds from 900 beds currently, Raghuvanshi said.

Dr Jothi Neeraja, Founder, MD and CEO, People Tree Hospitals, said, "People Tree Hospitals co-founded with Dr Upendra Kandluri, has always been guided by a vision of ethical, patientcentric and high-quality care. The strategic transition to Fortis Healthcare marks a pivotal milestone in this journey – reflecting our unwavering commitment to clinical excellence and robust governance."