India's Max Healthcare Institute (MAXE.NS) said on Friday it would buy Sahara Hospital in Lucknow, Uttar Pradesh for an enterprise value of 9.40 billion rupees ($112.76 million), as it looks to expand its operations in the country.
The 550-bed Sahara Hospital treats about 200,000 patients every year and has a revenue potential of 2 billion rupees for fiscal 2024, Max Healthcare said in a statement.
The company, which has 17 healthcare facilities mostly concentrated in North India, said Sahara Hospital has the potential to quickly ramp up beds and expand medical programs such as oncology and transplants.
Deals in Indian hospitals space have heated up, with mergers and acquisitions totalling $4 billion in 2022 and $2.2 billion in the first five months of this year.
Global consultancy firm PwC projects 12%-14% annual growth for the country's private healthcare market, which has seen a post-pandemic boom.
Indian hospital chain operator Manipal Hospitals in September acquired an 84% stake in AMRI Hospitals in its bid to expand its presence in eastern India, while private equity firm Blackstone (BX.N) in October said it would buy a majority stake in India's Care Hospitals.
($1 = 83.3650 Indian rupees)
