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Acquisition 2015-01-07

Apollo Health takesover Nova Specialty Hospitals in Rs 145 crore deal

The new acquisition of Bengaluru-based Nova Specialty Hospitals by Apollo Health will add 45 modular operation theaters in the later’s network and the combined network of the two is expected to touch a turnover in the range of Rs 115-125 crore by the end

Apollo Health takesover Nova Specialty Hospitals in Rs 145 crore deal

Apollo Health and Lifestyle Ltd (AHLL), known to be a subsidiary of country’s top hospital firm’s Apollo Hospitals Enterprise Limited, has completed acquisition on Bengaluru-based Nova Specialty Hospitals at an estimated cost of Rs 145 crore.

The acquisition fits the growth strategy of AHLL as it provides a much larger footprint to the brand, including the markets where the company has zero presence at the moment.

Reportedly, the acquisition has been funded through debt and equity components.

Sangita Reddy, Joint Managing Director, Apollo Hospital Enterprise Ltd said, “AHLL is currently present in the secondary care segment through the day surgery and cradle formats. Given the potential and the need for quality health care delivery closer to the home, the acquisition will enable AHLL to expand its footprint.”

Reddy further added, "The chain of 11 facilities of Nova is spread across 8 cities and will add to Apollo's network of 45 modular operation theatres. The combined network will clock a turnover in the range of Rs 115-125 crore for the financial year ending March 2015."

She said, "With the synergies that Apollo brings to the table, the management expects to break-even in the next 18-24 months.” Moreover, the acquisition of the hospital will mean the addition of over 300 beds that Nova has.

On that note, Reddy also explained, "There is a strong synergy between Nova Specialty Hospitals’ format and tertiary care hospitals. We intend to capture these synergies to the benefit of the patients we serve and doctors we partner with."

She further informed that the acquisition will see Apollo entering markets like Mumbai, Jaipur and Kanpur. Also, in the upcoming months, the brand will re-launch the existing centres of Nova with new branding, an expanded menu of services and quality systems built on Apollo's expertise.

Meanwhile, the subsidiary's Chief Executive Neeraj Garg said that they are targeting a turnover of Rs 500 crore over the next five years.

While, commenting on the deal, Suresh Soni, Chairman, Nova Medical Centres said, "As early movers in short stay surgeries, the hospital chain had been focusing on providing people affordable and accessible healthcare."

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