Halcyon Finance and Capital Advisors Private Limited, a turnaround specialist, has acquired hospital management services firm Integrated Health and Healthcare Services India Private Limited (IHHS) for $44.4 million (Rs 202 crore) through its Singapore based subsidiary Infrahealth Pte Ltd.
Abhay Soi, Co-founder and Managing Director, Halcyon, confirmed the deal to VCCircle. “In line with Halcyon's business model, IHHS is in the business of unlocking value in latent assets within the healthcare delivery space through application of financial and managerial resources," Soi said.
IHHS is owned by Mauritius-based Integrated Health and Healthcare Services, which is in the business of developing & redeveloping, managing and operating healthcare facilities in India. It currently manages Delhi-based Dr BL Kapur Memorial Hospital.
Dr Praneet Kumar, former COO of Fortis Hospital (Shalimar Bagh, New Delhi), is heading Integrated Health & Healthcare Services India Pvt. Ltd as CEO and will continue in his role under the new management.
IHHS forayed into the Indian healthcare sector with the redevelopment of Dr BL Kapur Memorial Hospital, which has a history of over 50 years, at a cost of Rs 350 crore. The present facility of BLK was completely rebuilt and re-launched in 2009 as a 500-bed state-of-the-art super specialty tertiary care hospital with a built up area of 6.5 lakh sq ft spread across five acres located in the heart of Delhi.
IHHS is close to taking up two more hospital facilities on management contract basis. In addition, IHHS is also planning to take up complete redevelopment and management of another super specialty tertiary care hospital in northern India, Soi said.
According to analysts, the deal is in favour of Halcyon as it is a discounted price compared to industry standards. According to industry standards, hospital facilities per bed are valued in the range of Rs 60-80 lakh and in case of hospitals like Apollo and Fortis, it may go up from Rs 80 lakh to Rs 1.5 crore.
Co-founded by Narayan K Seshadri, who is credited with turning around KPMG Consulting in India, and Abhay Soi, Halcyon has earlier made investments in sectors such as textiles, paperboards, agri-chemicals, sugar manufacturing, stock broking, and footwear & apparel retail. Seshadri is the chairman and CEO of the company.
Halcyon had invested $8 million in Specialty retailer SSIPL Pvt Ltd or Sports Station through optionally convertible preference shares with a coupon rate of 12%. These shares are currently held through a mix of equity and convertibles. According to sources, Halcyon along with another PE investor Tano Capital is in talks with the company for an exit.
Halcyon also announced its decision to raise a maiden $200-million distressed assets specialist fund with an onshore component of a $100 million and an offshore commitment of $100 million.