Apollo Health acquires Nova Specialty Hospitals
Bengaluru: Apollo Health and Lifestyle Ltd (AHLL), a wholly-owned subsidiary of Apollo Hospitals Enterprise, has acquired Bengaluru-based Nova Specialty Hospitals at an estimated cost of Rs 135-145 crore.
The acquisition fits the growth strategy of AHLL, providing it a larger footprint, including in many markets where the company currently has no presence. The acquisition has been funded through debt and equity components, said a senior executive of Apollo. The deal gives it entry into new markets.
Sangita Reddy, joint managing director, Apollo Hospital Enterprise Ltd, said, “AHLL is currently present in the secondary care segment through the day surgery and cradle formats. Given the potential and the need for quality health care delivery closer to the home, the acquisition will enable AHLL to expand its footprint.”
The chain of 11 facilities of Nova is spread across eight cities, and will add to Apollo's network of 45 modular operation theatres, added Reddy. The combined network will clock a turnover in the range of Rs 115-125 crore for the financial year ending March 2015.
"With the synergies that Apollo brings to the table, the management expects to break-even in the next 18-24 months," added Reddy. Acquisition of the hospital will mean the addition of over 300 beds that Nova has. Nova has been a loss-making entity.
She said, "There is a strong synergy between Nova Specialty Hospitals format and tertiary care hospitals. We intend to capture these synergies to the benefit of the patients we serve and doctors we partner with."
The acquisition will see Apollo entering new markets such as Mumbai, Jaipur and Kanpur. In the coming months, Apollo will re-launch these centres with new branding, an expanded menu of services and quality systems built on Apollo's expertise, Reddy informed.
Neeraj Garg, chief executive officer, AHLL, said, “AHLL is aiming to create a business of Rs 500 crore in five years in the space of multi-speciality short stay/day surgery centres.”
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.