Apollo Health and Lifestyle (AHLL), a wholly-owned subsidiary of the Apollo Hospitals Group...
Apollo Health and Lifestyle (AHLL), a wholly-owned subsidiary of the Apollo Hospitals Group has acquired Nova Specialty Hospitals (NSH). The deal size is estimated to be in the range of R135-145 crore.
Nova Specialty Hospital’s existing centres will serve as new centres under the Apollo brand name and will benefit from Apollo’s expertise, clinical excellence and empathy.
Sangita Reddy, joint managing director, Apollo Hospital Enterprises, said, “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 catapult it into a leadership position in this segment of healthcare. We believe the format has strong potential and with the brand equity of Apollo, combined with the deep hospital expertise we bring to bear, AHLL will grow this business significantly in the next few years.”
“This acquisition will also mark the entry of Apollo in new markets such as Mumbai, Jaipur and Kanpur,” she added.
The acquired chain of Nova Specialty Hospitals is spread over eight cities and will add to the Apollo’s network with an average 20,000 sq-ft of built-up space in each centre. These centres provide both in-patient and OPD services with 60% of the procedures currently being done as day procedures.
The combined network will clock a turnover of between R115 crore and R125 crore for the year ending March 2015 and with the group synergies that Apollo brings to the table, the management is confident of achieving break even in the next 18 to 24 months.
“Nova Specialty Hospitals is a chain of 11 short-stay surgery centres. AHLL will strengthen the service offerings in these centres by introducing preventive health checks and establishing sugar clinics. AHLL is aiming to create a business of R500 crore in five years in the space of multi-specialty short-stay/day surgery centres,” said Neeraj Garg, CEO, AHLL.
Suresh Soni, chairman Nova Medical Centres, said, “The Apollo Group is now in a position to accelerate NSH’s growth given its position as the pre-eminent hospital group.”