Manipal Hospitals looks for expansion with Columbia Asia acquisition

The acquisition of Columbia Asia will expand the privately-held chain's geographical reach, especially in the underserved eastern region

The acquisition of Columbia Asia chain of hospitals catapulted Bengaluru-based Manipal Hospitals to the second spot after Apollo Hospitals with 7,300 beds spread across 27 locations. What does this Rs 2,100-crore deal mean for this privately-held entity, which has been seeking to bulk up since 2018?

Backed by private equity players such as TPG and Temasek apart from the Pai family, the Columbia Asia deal is third time lucky for Manipal Hospitals, which had unsuccessfully bid for Medanta, the Medicity in 2019 and Fortis Hospitals in 2018.

The question, of course, is whether it is prudent to borrow for an acquisition of