Multi-speciality healthcare provider and operator Manipal Hospitals has announced that it will fully acquire Columbia Asia Hospitals Pvt Ltd, just weeks after reports suggested that the two were in advanced acquisition talks.
In a statement, the Manipal Health Enterprises Pvt Ltd-operated chain said the move will help it promote its delivery of healthcare services as well increase its footprint in eastern India and other parts of the country.
Last month, reports suggested that Manipal was in an advanced talks to acquire the Indian operations of the Columbia Asia hospital chain from the United States-based Columbia Pacific Management for around Rs 1,600 crore (around $220 million).
The combined entity will have a presence of 27 hospitals across 15 cities, with a capacity of over 7,200 beds and more than 4,000 doctors and 10,000 employees. The two did not disclose the financial details of the transaction.
Columbia Asia Hospitals initially began operations in 2005 in Bengaluru. It now operates 11 hospitals in locations such as Mysuru, Kolkata, Gurugram, and Ghaziabad. Its capacity includes 1,300 beds, 1,200 clinicians, and 4,000 employees.
According to VCCEdge, the data research arm of Mosaic Digital, Columbia Asia Hospitals reported consolidated net sales of Rs 897.51 crore for the 2018-19 financial year. It reported losses of Rs 9.65 crore for the same period.
Manipal Health Enterprises reported consolidated net sales of Rs 1,794.35 crore and losses of Rs 134.87 crore for the same fiscal year. Per VCCEdge, the TPG Asia Buyout Fund holds a 21.48% stake in the company, while Temasek Holdings Advisors India Pvt Ltd holds a 18.11% stake.
To discuss the business opportunity and the challenges in the healthcare sector, VCCircle is organising the Healthcare Investment Summit 2020—a virtual event—on December 11. Check out the details and register click here https://healthcare.vccevents.com/