Fortis Healthcare Expands Footprint, Buys People Tree Hospital in Bengaluru for INR 430 Crore

On 20 December, Fortis Healthcare announced that it had signed an agreement to pay INR 430 crore to acquire People Tree Hospital in Bengaluru. Through a 100% acquisition of TMI Healthcare Pvt Ltd, the organisation that runs the People Tree Hospital business, the company has finalised agreements to purchase the 125-bed hospital in Yeshwanthpur, Bengaluru.

According to a statement, Fortis' wholly owned subsidiary International Hospital Limited (IHL) would carry out the aforementioned acquisition. Over the following three years, the healthcare provider plans to invest an additional INR 410 crore in the facility to significantly enhance clinical programmes, including radiation oncology, medical equipment, and bed infrastructure.

Specifics of the Deal

According to the corporation, the purchase of the 0.8-acre neighbouring land tract gives it the opportunity to increase bed capacity to more than 300 beds. Ashutosh Raghuvanshi, MD and CEO of Fortis Healthcare, said the acquisition allows us to take advantage of size and synergies and aligns with Fortis' goal of growing its presence in targeted clusters. He went on to say that the acquisition is a strategically significant addition that will improve the company's standing in the Bengaluru market. According to Raghuvanshi, Fortis already has seven facilities in the city and has the capacity to expand from its existing 900 beds to over 1,500 beds.

The Deal Anticipated to be Completed by January 2026

Subject to the fulfilment of specific requirements as outlined in the definitive agreements, the transaction is anticipated to be completed by January 2026. Situated in a densely populated neighbourhood in northwest Bengaluru, People Tree Hospital, Yeshwanthpur, is an NABH-accredited hospital with excellent access to major transportation hubs. It provides important specialities like neurology, gastroenterology, orthopaedics, cardiac sciences, and renal sciences.

In an effort to double down on wealth generation in India, Fortis' principal shareholder, IHH Healthcare, recently announced plans to increase capacity by adding 2,000 beds. IHH currently owns 31.17% of Fortis, and the global healthcare company was recently given permission by the Securities and Exchange Board of India (Sebi) to move forward with its required open offer to purchase 26% of both Malar Hospitals and Fortis Healthcare. The conclusion of the open offer also raises the question of whether Fortis's greenfield expansions will be the source of IHH's bed growth.