Usually, we tend to focus on U.S. transactions, as it's a big ol' world out there and there's too much to tell. But these days, given the increasingly powerful U.S./India healthcare connection fostered by medical tourism, we thought this deal was too interesting to leave out of our coverage.
This week, private Indian hospital chain Fortis Healthcare agreed to buy 10 facilities from Wockhardt Hospitals for about $187 million, part of the chain's larger expansion plans. With the acquisition, Fortis will own or operate 38 hospitals across India, which include 5,200 beds.
Fortis isn't just a rapidly growing chain, it's a profitable one, too. In July, the company reported that its net profit shot up by 700 percent for the first quarter of its fiscal year, ended June 30, 2009, and that revenue climbed 27 percent.
Indian publications note that several of the country's hospital chains, including Fortis, Apollo, Wockhardt, Manipal and Max are beginning to see blossoming profits despite the fact that they're largely in an investment phase. This is primarily because the hospital industry is growing rapidly across the board, analysts there say. Expect to see American investors show up there next!
To learn more about the deal:
- read this piece from The New York Times
- read this discussion in the Business Standard