Max Healthcare acquires Sahara Hospital for Rs 940 crore

Max Healthcare Institute Ltd has taken a step towards expansion by announcing the complete acquisition of Starlit Medical Centre Pvt Ltd for an enterprise value of Rs 940 crore. This move grants Max Healthcare ownership of the 550-bed Sahara Hospital in Lucknow. The acquisition was formalized through a binding share purchase agreement (SPA) for the 100 per cent stake of Starlit Medical Centre Pvt Ltd. The latter had earlier engaged in a business transfer agreement with Sahara India Medical Institute Ltd, acquiring healthcare assets, including the 550-bed Sahara Hospital, Lucknow, on a slump sale basis.

The SPA, valued at Rs 940 crore, was executed through one of Max Healthcare's wholly-owned subsidiaries, Crosslay Remedies Ltd (CRL). This strategic acquisition marks Max Healthcare's entry into Lucknow, a city experiencing rapid growth in Uttar Pradesh. Sahara Hospital, classified as a tertiary care facility, offers comprehensive healthcare services with a spectrum of super specialties, encompassing gastroenterology, neurology, surgery, cardiology, pulmonology, and diagnostics, all available under one roof.

Abhay Soi, Chairman and Managing Director of Max Healthcare Institute, highlighted that the acquisition aligns with the company's overarching strategy to extend its reach into new Tier I and Tier II cities with well-established healthcare service ecosystems. Soi expressed confidence in leveraging the company's successful track record of post-merger integration to enhance operating and financial performance. This, he believes, will be achieved through the medical excellence of Max Healthcare's clinicians and continued patronage from patients.

Sahara Hospital, at present, operates with around 250 operational beds, generating a FY24 revenue run rate of Rs 200 crore. The hospital serves approximately 2 lakh patients annually and contributes to the healthcare ecosystem in the region by hosting a nursing college on its premises with an annual intake of over 100 students.

This strategic acquisition not only fortifies Max Healthcare's position as a leading healthcare provider but also underscores its commitment to extending quality healthcare services to emerging urban centers. As the healthcare landscape evolves, Max Healthcare's expansion into Lucknow signifies a proactive approach to meeting the growing demand for high-quality medical services in dynamic markets.