Manipal Hospitals to take 87% stake in Medica Synergie for Rs 1.4K crore

Deal will make it India's largest hospital chain with over 10,500 beds

Manipal Hospitals on Monday announced the signing of a binding agreement to acquire 87 per cent stake in Kolkata-based hospital chain Medica Synergie.

The deal size is estimated to be around Rs 1,400 crore, according to industry sources.

The addition of Medica will push the current hospital bed count of Manipal from over 9,500 to more than 10,500. This will make it India’s largest hospital chain, overtaking Apollo Hospital Enterprise (10,103 beds, as of March 31, 2024).

With the completion of acquisition of Medica Synergie and AMRI Hospitals, the integrated network will have a pan-Indian footprint of 37 hospitals across 19 cities.

“This acquisition is in line with Manipal Hospitals’ strategy of expanding footprint in Eastern India as the leading hospital chain in the region,” the company said in its statement.

Allegro Capital Advisors, Khaitan and Co. and KPMG were the advisors to Manipal Health Enterprise in this transaction.

The acquisition comes as the hospital chain has been working towards its expansion efforts. In September 2023, Manipal Hospitals had acquired an 84 per cent stake in Emami Group's AMRI Hospitals.

“By leveraging the clinical expertise and infrastructure of Medica Synergie, along with the combined operations of its extensive network, Manipal Hospitals will be well positioned to meet the increasing demand for high quality tertiary and quaternary healthcare services in Eastern India,” the company added.

Commenting on the development, Dilip Jose, managing director (MD) and chief executive officer (CEO) said with this acquisition, Manipal Hospitals builds on its strong presence in Eastern India and enables the company to meet the healthcare needs of this under-served region.

“We will integrate Medica Synergie into our portfolio and rebrand it. Together, we are poised to deliver enhanced, exceptional quality healthcare to our patients across Eastern India, including in Kolkata, Siliguri, and Ranchi,” he added.