Delhi-based Moolchand Healthcare Ltd has acquired Agra-based Pankaj Apollo Hospital, a 200-bed tertiary care hospital as it continues to expand its network in north India. Although the deal value was not disclosed the firm said it will put fresh money to expand the bed capacity by 50 per cent in Agra hospital and the total investment would be Rs 75 crore (including transaction value).
The acquisition enables Moolchand to strengthen its footprint in the Delhi NCR and adjoining areas and comes as a strategic fit, according to Vibhu Talwar, managing director, Moolchand Healthcare. “In addition, it provides Moolchand an early mover advantage as leading hospital groups are largely absent from the Agra market,” he said.
In phase 1 of the expansion of services at the acquired hospital, over the next 18 months, it plans to provide a comprehensive cancer institute. Post that, in phase II, Moolchand intends to expand capacity to 300 beds.
"This acquisition is in line with Moolchand Healthcare’s Rs 500 crore expansion plan announced earlier this year and enables Moolchand to expand its footprint to cover Western Uttar Pradesh. We are aggressively seeking additional acquisition opportunities as we intend to assemble a portfolio of 5-10 hospitals over the next few years," according to Shravan Talwar, managing director, Moolchand Healthcare.
Sapphire Professional Services acted as the financial advisors and Khaitan & Company acted as the legal advisors on this transaction.
In June 2011, Sequoia Capital had invested $20.17 million in Moolchand Healthcare for 21.65 per cent stake.
(Edited by Sanghamitra Mandal)