Max Healthcare Institute Ltd on Friday, February 9 announced the acquisition of 100% stake in Nagpur-based Alexis Multi Speciality Hospital at an enterprise value of ₹412 crore.
In a stock exchange filing, the leading private healthcare provider said the acquisition will help expand its footprint in the western market and is in line with its strategy to increase the presence in tier-2 cities.
Alexis Hospital is the only JCI-accredited hospital in Nagpur, Maharashtra, with a capacity of 200 beds, which can be expanded to 340 beds, the company said.
The hospital provides tertiary care services such as oncology (including radiation), neurology, organ transplant, cardiology, gastroenterology and diagnostics facilities.
The hospital is built over a land parcel of 2 acres has a built-up area of 2.25 lakh sqft spread across six floors. It is located at Mankapur, North of Nagpur, which is a residential and commercial hub.
Alexis Hospital has a current run rate of revenue and EBITDA at ₹150 crore and ₹25 crore, respectively, Max Hospital said.
On expansion, Max Healthcare said that the bed capacity can be expanded to 340 beds. The hospital medical programme can be further strengthened in the surgical specialties such as oncology and neurosciences, urology, and CTVS, which can help improve average revenue per occupied bed and occupied bed days, the company said.
“The acquisition of Alexis Hospital is in line with our vision to expand our footprint in tier 2 cities with abundance of clinical talent and developed private healthcare infrastructure,” Max Healthcare Institute Ltd Chairman and Managing Director Abhay Soi said.
Max Healthcare has a major concentration in North India with a network of 17 facilities. Of these, eight hospitals and four medical centres are located in Delhi-NCR. The others are located in the cities of Mumbai, Mohali, Bathinda and Dehradun.
Max Healthcare shares were trading lower by 1.03% at ₹861.05 apiece on BSE at 11.06 AM.
