Expanding the Healthcare Footprint: Apollo Health and Lifestyle Ltd Takes A Step Forward With Nova Speciality Hospitals
Expanding the Healthcare Footprint: Apollo Health and Lifestyle Ltd Takes A Step Forward With Nova Speciality Hospitals
Apollo Health and Lifestyle Ltd/AHLL, a completely owned subsidiary of Apollo Hospitals on Tuesday, 6th January 2015 announced the completion of an acquisition of Nova Speciality Hospitals. This Bangalore based hospital chain has been acquired in a deal size amounting to INR 135 to 145 crore, subject to final closure.
Apollo Shines Bright
Through this acquisition, AHLL is working to generate a business of INR 500 crore in 5 years in the space of multi-speciality short stay or day surgery centres. The existing centres of Nova Speciality Hospitals will function as new centres under the Apollo brand name.
Joint Managing Director, Apollo Hospitals Enterprises Limited, Sangita Reddy has been quoted as saying regarding this deal that, “AHLL is currently present in the secondary care segment through the day surgery and Cradle formats. Given the immense potential and the need for quality healthcare delivery closer to the home, this acquisition will enable AHLL to significantly expand its’ footprint and will also mark the entry of Apollo in new markets such as Mumbai, Jaipur and Kanpur.”
Nova Opens New Avenues
Nova Speciality Hospitals has 11 short stay surgery centres, and Apollo currently has around 100 operational facilities spread across the nation and the Middle East. Through this acquisition, Apollo has gained 350 beds and 500 doctors spread over a total of 8 cities where Nova Speciality Hospitals is operating. “Funds for this acquisition will be raised through a mix of debt and equity.” Reddy added. Apollo Hospitals had also recently collaborated with Sanofi to provide diabetes care programmes via Apollo Sugar Clinics.
This acquisition is in accordance with the growth strategy of AHLL and it opens new doors for the Apollo Group in markets where the company at present has no presence. The acquisition has been funded via debt and equity components, according to a senior executive of Apollo. This deal ensures new entries into markets that are rapidly growing.
The acquisition will add to Apollo network’s 45 modular operation theatres and the combined network will yield a turnover in the range of INR 115 to125 crore for the financial year ending March 2015.
"With the synergies that Apollo brings to the table, the management expects to break-even in the next 18-24 months," Reddy also added. She also said, "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.”
Entering New Markets With Nova
Through this acquisition, Apollo will enter new markets such as Mumbai, Jaipur and Kanpur. Apollo will relaunch the centres with new branding and a growing menu of services and quality systems associated with the expertise of Apollo. Neeraj Garg, CEO, AHLL, has indicated that “AHLL is aiming to create a business of Rs 500 crore in five years in the space of multi-speciality short stay/day surgery centres.”
