Dubai-based healthcare major Aster DM Healthcare, which runs a hospital chain in Middle East and India, has acquired Sri Sainatha Multi Speciality Hospital for $6.8 million as a part of its expansion strategy.
Hyderabad-based Sri Sainatha Multi Speciality Hospital operates its multi-specialty hospital under the brand name of Prime Hospitals. It currently has 250 beds across its hospital centres in Ameerpet and Kukatpally.
Chennai-based VNS legal acted as an advisor to Sri Sainatha on the deal.
VCCircle had earlier reported that DM Healthcare was looking at a complete acquisition or acquiring large majority stakes in hospitals as part of its expansion and was in talks with players in Mumbai, Bangalore and Hyderabad.
According to Dr Azad Moopen, chairman and managing director of Aster DM Healthcare, the company is looking at inorganic growth in a big way. In two years, it plans to add 1,500 beds through greenfield projects and another 1,000 through acquisitions.
Earlier, it had acquired a majority stake in Malabar Institute of Medical Sciences (MIMS) and is mulling to launch more hospitals under the MIMS brand.
DM Healthcare raised $60 million from its existing investors Olympus Capital and India Value Fund Advisors (IVFA), early this year. In 2012, Olympus Capital invested $100 million through a mix of primary share purchase and secondary transaction which saw existing investor IVFA part exit. IVFA invested over $50 million in two rounds in the company in 2008 and 2011.
The company, which was started by Moopen family in Dubai and later moved its corporate base to India, is also considering an IPO in a year. It earns a major portion of its revenue from the Middle East, with the largest chain of hospitals, clinics and pharmacies in the UAE under the Aster and Medcare brands, with significant operations in Qatar, Oman and Saudi Arabia. The company is also extensively looking to augment its presence in India and South Asian markets.
In India it has a significant presence in Kerala and Maharashtra and plans to expand in the southern and western regions of the country.
It has hospitals such as Aster Medcity in Kochi, a large 1,000-bed quaternary care hospital, which is operating its first phase of 540 beds; Malabar Institute of Medical Science, a tertiary care hospital in Kerala with around 800 beds; Aster Aadhar hospital, a secondary care hospital in Kolhapur and Aster Medipoint Hospital in Pune. It is also planning to start a hospital in Bangalore.
(Edited by Joby Puthuparampil Johnson)