Max Healthcare Institute, an Indian private healthcare services provider, recently announced the execution of a binding Share Purchase Agreement (SPA) for the acquisition of a 100% stake in Starlit Medical Centre Starlit for an enterprise value of Rs 940 crore through one of its wholly owned subsidiaries, Crosslay Remedies.
Starlit had entered into a Business Transfer Agreement (BTA) with Sahara India Medical Institute Ltd to purchase a Healthcare Undertaking consisting of 550 bedded Sahara Hospital, Lucknow, on a slump sale basis.
The location of the hospital
The hospital is located on a land parcel of ~27 acres at Gomti Nagar, Lucknow, an upmarket residential and commercial hub. It is housed in a 17-storey building with a built-up area of ~ 8.9 Lakh sq ft. It offers multi-disciplinary care in various specialities like gastroenterology, neurology, surgery, cardiology, pulmonary, and diagnostics facilities, the company said in a release.
It also has a Nursing College on the same premises, which offers GNM, BSc and MSc courses, with an annual intake of 100+ students.
Why Lucknow?
Lucknow is well connected via an international airport, a network of highways, expressways and railways with all major cities in UP and other states. Further, the city has experienced medical talent available due to the presence of government hospitals, medical colleges and private healthcare players, it said.
The acquisition marks Max Healthcare’s entry into Lucknow, one of the fastest-growing cities in Uttar Pradesh. Max Healthcare will bring high-end medical programmes such as Oncology, Organ Transplants and also strengthen the existing programmes like Orthopaedics, Cardiac Sciences, Neurosciences, Renal Sciences, etc.
What does the leadership say about the acquisition?
Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Ltd., said: “We are excited about this acquisition, which is in line with our strategy to enter new Tier I / II cities which have a developed healthcare services ecosystem. Given our track record of successful postmerger integration, we expect to quickly improve the operating and financial performance on the strength of medical excellence of our clinicians and continued patronage from our patients. Through our presence in Lucknow, we aim to bring quality healthcare to people of Uttar Pradesh.”
SPA has been executed by Crosslay Remedies Limited (CRL), a wholly owned subsidiary of MHIL, which owns and operates Max Super Speciality Hospital, Vaishali and Max Medical Centre, Noida. CRL was acquired by MHIL in July 2015 as a part of acquisition of erstwhile Pushpanjali Crosslay Hospital, Vaishali.
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