Max Healthcare to acquire Nagpur-based Alexis Hospital for Rs 412 rore | Company News – Business Standard
Max Healthcare Institute on Friday announced the acquisition of a 100 per cent stake in the 200-bed Nagpur-based Alexis Multi-Speciality Hospital Private Limited (Alexis) for an enterprise value of Rs 412 crore.
Max Healthcare added that the bed capacity can be expanded to 340 beds in view of the availability of the floor area ratio for the given land and the strength of the existing structure.
This will be Max Healthcare’s second hospital in Maharashtra after the 350-bed Nanavati Max Hospital situated in Mumbai, strengthening it in the Western region, where the healthcare company has seen weaker tailwinds.
Commenting on the company’s expansion push in the western region, a senior official with Max Healthcare said that they have already announced a 600-bed expansion to the Nanavati Max Hospital, taking the total bed count to 950 by the end of 2024.
“This is our second acquisition in FY 2024, after the 550-bed Sahara Hospital in Lucknow,” the official said.
The company had also signed a long-term services agreement with Muthoot Hospitals for the operations and management of a 300-bed hospital in New Delhi’s Dwarka sub-city in the last financial year.
The current run rate of revenue and Ebitda for the newly acquired Alexis Hospital is estimated to be Rs 150 crore and Rs 25 crore respectively. “The hospital is generating cash and has good brand equity in the market in the region,” the company said in a regulatory filing on the Bombay Stock Exchange (BSE).
“The Alexis hospital has a built-up area of around 2.25 lakh square feet and offers multidisciplinary care in the areas of Gastroenterology, Neurosurgery, Cardiology, Transplants and related diagnostic facilities,” the company said in a release.
“Further, the hospital’s medical program can be further strengthened in the surgical specialties like Cardiothoracic and Vascular Surgery (CTVS), Urology, Oncology, and Neurosciences, leading to an improvement in average revenue per occupied bed (ARPOB) and occupied bed days (OBD),” the company added in its statement.
Commenting on the acquisition, Abhay Soi, Chairman and Managing Director, Max Healthcare Institute said that the acquisition of Alexis Hospital is in line with our vision to expand our footprint in tier 2 cities with an abundance of clinical talent and developed private healthcare infrastructure.
The 200-bed hospital is also recognised by the Joint Commission International (JCI), a global leader in healthcare accreditation. “The Alexis Hospital acquisition will strengthen Max Healthcare’s presence in the Maharashtra region. With this addition, Max Healthcare now has 4 JCI accredited facilities in its network,” Soi said.
First Published: Feb 09 2024 | 8:49 PM IST