The Aurum perspective – North India based hospitals are an attractive target for South India based hospital companies seeking national footprint. Is M & A activity within the hospital segment in India pushing up valuations?
Bangalore based Narayana Health has acquired the hospital business from Jubilant First Trust Healthcare, a wholly owned subsidiary of@JubilantLifeSciences. The trust operates two hospitals in West Bengal, Kalpataru in Barasat and Rabindranath Thakur in Berhampore which have been transferred to Narayana on a going concern basis as a slump sale. The value of the deal was not disclosed.
@AnandRathiAdvisors were the deal makers.
The acquisition for Narayana is part of the strategic growth plan to expand in the east whereas for Jubilant the sale is to focus on its core businesses in Pharmaceuticals and Life Sciences. Recently, Jubilant Group was also planning to divest its chemical business to trim its debt which stands at $600 Mn and focus on its pharma business in US.