VedaCorp advises Fortis Healthcare on the divestment of its Chennai facility to Kauvery Hospital.

Healthcare & Life Sciences

DATE June, 2023

TYPE M&A

About

Fortis Healthcare

Fortis Healthcare Limited is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics, and day care specialty facilities. Currently, the company operates 27 healthcare facilities (including O&M facilities). The Company’s network comprises approximately 4,500 operational beds and 400 diagnostics centres.

Kauvery Hospitals

Kauvery Group of Hospitals, is a leading hospital chain in South India having built a strong foothold in its focus markets of Tamil Nadu and Karnataka over the last two decades. With this acquisition, the Group will operate with a network of 11 hospitals comprising of 2,000+ beds spread across 6 cities viz. Chennai, Trichy, Bangalore, Salem, Hosur and Tirunelveli.

Background

We are pleased to announce that our client, Fortis Healthcare Limited (“Fortis”), has signed definitive agreements for sale of its facility in Vadapalani, Chennai to Kauvery Group of Hospitals (“Kauvery”) for a consideration of INR 152 crores.

Fortis is among the leading hospital chains in the country with over 27 facilities, 4500 operational beds and 400 diagnostic centres. . The Vadapalani facility, was commissioned in October 2020 and is located on the arterial Arcot Road. It currently has 110 operational beds with a potential to scale up-to approx. 200 beds.

VedaCorp was successful in generating significant interest from multiple healthcare operators through competitive bid process paving the way for a successful outcome of the Transaction.

Veda Corporate Advisors (“VedaCorp”) was the financial advisor to Fortis on this transaction. The transaction involved VedaCorp working closely with the Fortis team and providing comprehensive transaction advisory services covering identification of prospective investors, strategic positioning of the opportunity, valuation through price discovery process, assistance in due diligence, negotiation and finalization of definitive agreements.

This is VedaCorp’s 46th transaction in the healthcare & life sciences space and 19th multi-speciality hospital transaction. This also marks VedaCorp’s 7th transaction in healthcare & life sciences space in the last 1 year.