Fortis Healthcare Clears Legal Hurdle, Proceeds with Shrimann Hospital Acquisition

Image Source: Bar And Bench

Fortis Healthcare has successfully vacated an ex-parte injunction order, allowing the sale of Shrimann Superspecialty Hospital in Jalandhar to move forward. The acquisition, valued at ₹462 crore, is expected to strengthen Fortis’ presence in Punjab, adding 228 beds to its network.

Legal Clearance:

The ex-parte injunction order that temporarily halted the transaction has been vacated, enabling Fortis to proceed with the acquisition.

Acquisition Details:

Fortis will acquire Shrimann Superspecialty Hospital through a slump sale, including hospital operations, land, and infrastructure.
The deal includes an adjacent land parcel, allowing future expansion.

Strategic Expansion:

The acquisition boosts Fortis’ Punjab cluster, increasing its total bed capacity to over 1,000 across five facilities.
The hospital specializes in cardiac sciences, nephrology, oncology, neurology, and gastroenterology.

Financial Outlook:

Shrimann Hospital is expected to generate ₹154 crore in revenue with an EBITDA of ₹36 crore for FY 2024-25.
The transaction is set to be completed by March 2025, subject to final regulatory approvals.

Strategic Outlook:

With the legal hurdle cleared, Fortis Healthcare is poised to expand its footprint in Punjab, reinforcing its commitment to high-quality healthcare services. The acquisition aligns with the company’s growth strategy, ensuring enhanced medical infrastructure and patient care.

Source: Fortis Healthcare, BW Legal World, Business Standard.