Bidding War Intensifies for Sahyadri Hospitals, Acquisition Valued at INR 5,500 Cr
The potential acquisition, valued at over INR 5,500 Cr, marks a significant move in the ongoing consolidation of India’s private healthcare sector.
In the race to acquire Ontario Teachers Pension Plan (OTPP)-controlled Sahyadri Hospitals, at least four bidders have entered the next stage.
As per reports, following the submission of initial bids, four major players, namely Temasek-led Manipal Hospitals, Swedish private equity major EQT, US private equity giant KKR and Malaysia's IHH have moved a step closer in the race for acquisition.
These final contenders are now expected to conduct due diligence, with final binding offers anticipated by mid-June, as reported by MoneyControl.
Preliminary bids are said to have exceeded INR 5,500 Cr. However, final valuations may be revised based on the findings of due diligence and ongoing negotiations.
One of the sources said, “Depending on the quality of earnings and a few red flag issues that are being studied, the final offer could change. ”
Details on the Ongoing Race
Sahyadri Hospitals is nearly fully owned by the Ontario Teachers’ Pension Plan (OTPP), which acquired a controlling stake from Everstone Group in August 2022.
Since the acquisition, OTPP has expanded the hospital chain’s service lines to include oncology and mother-and-child care, and it now operates over 1,200 beds across Pune, Ahmednagar (Ahilyanagar), and Nashik.
The chain is also planning further expansion across Maharashtra. It is expected to generate around INR 240 Cr in EBITDA for FY25, making it an attractive target for both strategic and financial investors.
Further, Manipal Hospitals has been growing through acquisitions, including those of Vikram Hospitals and Columbia Asia in India.
IHH Healthcare, another shortlisted bidder, has also outlined plans to add 1,000–2,000 beds in India via acquisitions. Currently operating around 5,000 beds under the Fortis and Gleneagles brands, IHH plans to add 2,000 beds through brownfield projects and focusing on expanding into tier-2 cities while maintaining its dual-brand strategy and integrating backend operations for improved efficiencies.
Meanwhile, EQT and KKR have been actively pursuing healthcare investments in the country, with EQT deploying over $6 billion in India in the past 21 months and KKR recently investing in HealthCare Global Enterprises.
Investment bank Jefferies is managing the sale of Sahyadri Hospitals, and Alvarez & Marsal is also involved in the process.
Stay tuned for more such updates on Digital Health News.
Stay tuned for more such updates on Digital Health News
