Max Healthcare to acquire 76% stake in NCR based Pushpanjali Crosslay Hospital for Rs 287 Cr.

Max Healthcare to acquire 76% stake in NCR based Pushpanjali Crosslay Hospital for Rs 287 Cr.

Max Healthcare (MHC) today announced that it has executed definitive agreements to acquire a controlling stake of 76% in NCR based Pushpanjali Crosslay Hospital (PCH) through a combination of fresh investment and acquisition of shares from existing promoters for the aggregate sum of Rs 287 Cr. Situated just 4 kms from Max Super Speciality Hospital in Patparganj, the 340-bedded Pushpanjali Crosslay is at a prime location along the East Delhi-Ghaziabad-Noida corridor. The hospital which has the capacity to expand up to 540 beds is NABH and NABL accredited and has been operational since 2010.

This move is in line with Max Healthcare’s ambitious growth strategy and follows its impressive financial performance and turn around to profitability. The new hospital, which will be rebranded under the Max Hospital umbrella, is expected to benefit immensely from clinical, management and financial synergies with the Max Healthcare network in general and Max Super Speciality Hospital, Patparganj in particular.

MHC is confident that this acquisition will provide significant expansion to the top and bottom line through sharing of resources, cost efficiencies, optimization of occupancy, and focusing on high growth specialities such as Oncology, Neuro Sciences, Renal Sciences including Kidney Transplant Program, Orthopedics and Cardiac Sciences.

Max Super Speciality Hospital, Patparganj, which is in close proximity to PCH, has already established a strong following and brand presence in the East Delhi & Western UP market and operates consistently at benchmark levels of occupancy. This acquisition, along with the existing hospitals in Patparganj, Noida and Greater Noida, will provide Max Healthcare a formidable presence in the East Delhi and Western UP region, which has a limited number of tertiary care hospitals catering to a population of more than 12.7 million.

Commenting on the acquisition, Rahul Khosla, Chairman, Max Healthcare and MD, Max India, said, “This acquisition comes at a fortuitous time for us when Max Healthcare has turned profitable and is poised for growth. Pushpanjali Crosslay is one of the few hospitals in NCR region which match Max Healthcare’s infrastructure and scale standards. Its 340 operational beds will allow immediate revenue and profit accretion to Max Healthcare. In addition, the reputation for excellence in medical services created by Max Healthcare, and particularly by our tertiary care hospital in Patparganj, will be hugely beneficial in attracting patients and top clinicians to our new hospital.”

Rajit Mehta, MD and CEO, Max Healthcare said, “Pushpanjali Crosslay is a welcome addition to our hospital network. We believe that we will be able to integrate it with our other hospitals fairly quickly to optimize clinical and service standards, realize cost efficiencies and attract more top clinicians to its already respectable clinical talent pool. Our patients should be confident of benefiting from the high levels of care and treatment that they have come to expect from any Max Hospital.”
PCH was founded by prominent Delhi clinician Dr Vinay Aggarwal along with a cooperative of around 250 doctors and 450 nursing staff. The property has 11 operation theatres, 4 labour rooms, 1 cath lab and is spread across 3.46 acres of freehold land, with a built up area of 3.84 lakh sq ft. With topof-the-line infrastructure and an opportunity to optimize the hospital’s operating model to drive efficiencies, the hospital presents MHC with immense scope for expansion and for transforming the hospital to a super speciality institution of choice in the near future. PCH had reported revenue of Rs 143 Cr at an EBIDTA margin of 14% in FY2014. Both these parameters underscore the potential for growth and upside by deploying Max Healthcare’s assets and expertise. Ernst & Young LLP acted as exclusive lead advisors on the transaction to PCH, while MHC’s side was led by Max Group and Life Healthcare’s in-house teams.

MHC plans to fund this transaction through a combination of debt and proceeds received from the recent stake increase by Life Healthcare & IFC.
Max Healthcare is on a steady path of growth, driven by significant increase in traction in its existing hospitals, and the ability to effectively harness growth from its new hospitals in Dehradun, Shalimar Bagh, Bathinda, Mohali and Greater Noida.

About Max Healthcare
Max Healthcare (MHC) is a joint venture with Life Healthcare, South Africa, and is the Country’s leading comprehensive provider of standardized, seamless and international-class healthcare services. It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education.
Max Healthcare has 12 facilities in North India, offering services in over 30 medical disciplines. Of this, 9 facilities are located in Delhi & NCR and the others in Mohali, Bathinda and Dehradun. The Max network includes state-of-the-art tertiary care hospitals in Saket, Patparganj, Shalimar Bagh, Mohali, Bathinda and Dehradun, secondary care hospitals at Gurgaon, Pitampura, Noida & Greater Noida and an out-patient facility and speciality centre at Panchsheel Park. The Super Speciality Hospitals in Mohali and Bathinda are under PPP arrangement with the Government of Punjab.

Max Healthcare has a base of over 2,200 doctors, 9300 employees, and over 2.5 million patients from over 80 countries, across its network of 12 hospitals.

About Max India
The Max India Group is a leading Indian multi-business corporate with a commanding presence in the Life Insurance, Healthcare and Health insurance sectors. In the financial year 2015, the Group recorded consolidated revenue of Rs. 14,877 crore. It has a total customer base of over 8 million, nearly 300 offices spread across India and employee strength of over 70,000 persons as on 31st March 2015. Max India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds 40.5% stake in the company. Other shareholders include some of world’s best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity, New York Life.

About Life Healthcare
Life Healthcare is the second largest private hospital operators in South Africa. It currently owns and operates 63 facilities with 8322 beds in a comprehensive geographic spread over seven South African provinces and Botswana. It is also a leading provider of acute rehabilitation and mental health services in the country.

For information please contact:
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