Fortis acquires People Tree Hospital in Bengaluru for Rs 430 Cr

image credit- freepik

Fortis Healthcare Limited (FHL) has announced signing of definitive agreements for the acquisition of the 125-bedded People Tree Hospital in Yeshwanthpur, Bengaluru (PTHY) by way of a 100% acquisition of TMI Healthcare Private Limited, the entity under which the PTHY business operations reside. The said acquisition would be undertaken by FHL’s wholly-owned subsidiary International Hospital Limited (IHL).

As part of the composite transaction, along with the acquisition of TMI Healthcare, IHL would also acquire the hospital building and the underlying land of PTHY from the promoters of TMI Healthcare and an adjacent land parcel from an independent third party; for a cumulative transaction value of Rs 430 crore (including debt residing with TMI Healthcare). The transaction shall be subject to customary closing adjustments as agreed in the definitive agreements.

The acquisition of the adjacent land parcel of ~0.8 acres provides the company a potential to expand bed capacity to 300+ beds. An additional investment of Rs 410 crore is planned over the next 3 years in the facility to further augment bed infrastructure, medical equipment and clinical programmes including Radiation Oncology. 

Basis the current hospital revenues of approx. Rs 74 crore (FY 25), the company believes it has an opportunity to strengthen existing operations; enhance revenues and profitability and simultaneously progress with the planned investment.

The transaction is expected to be consummated by end of January 2026, subject to the completion of certain conditions precedent as stipulated in the definitive agreements.