Max Healthcare Institute Ltd, an equal equity joint-venture between Max India Ltd and South Africa's Life Healthcare, has inked an agreement to acquire 76 per cent in Pushpanjali Crosslay Hospital through a combination of fresh investment and acquisition of shares from existing promoters for an aggregate sum of Rs 287 crore ($48 million), as per a stock market disclosure.
The 340-bed Pushpanjali Crosslay Hospital is located at Ghaziabad in the outskirts of Delhi and has the capacity to expand up to 540 beds. It was founded by doctor turned entrepreneur Vinay Aggarwal along with a cooperative of around 250 doctors and 450 nursing staff. The hospital has been operational since 2010.
It had reported revenues of Rs 143 crore with an EBIDTA margin of 14 per cent in the year ended March 31, 2014.
Max India Ltd is engaged in the business of life and health insurance, clinical research, healthcare services and manufacturing specialty films. It is spinning out its insurance and healthcare business into separate listed firms.
Max Healthcare, which runs Max Hospital, also counts IFC as a shareholder.
Last year, South African hospital chain Life Healthcare increased its stake in Max Healthcare to 46.5 per cent from 26 per cent for around Rs 794 crore ($132 million).
This is its first known inorganic expansion move.
There have been a string of other M&As in the hospital space since January this year with Advent-backed Quality Care acquiring an under construction project in Hyderabad, Malaysia's IHH Healthcare acquiring 51 per cent stake in Hyderabad-based Continental Hospitals for $45.35 million and Apollo Health and Lifestyle Ltd., a wholly-owned subsidiary of Apollo Hospitals Enterprise Ltd., acquiring Bangalore-based Nova Specialty Hospitals Pvt Ltd from Nova Medical Centers Pvt Ltd for $21.25 million, according to VCCEdge, the data research platform of VCCircle.