Sahyadri Hospitals Bids for Sale: Major Players Show Interest
New Delhi: Manipal Hospitals, Singapore’s IHH Healthcare, Blackstone-owned Quality Care India, Max Healthcare, KKR & Co., and EQT Partners have submitted initial bids for Sahyadri Hospitals, a leading hospital chain in Maharashtra, India. The bids range from Rs 4,500-5,000 crore. Sahyadri, owned by Canada’s Ontario Teachers’ Pension Plan Board, has a network of 11 hospitals in Pune, Nashik, Ahilya Nagar, and Karad. The May 1 deadline for bids has been extended for a few more weeks.
Warburg Pincus and Ahmedabad’s Torrent Group are also interested in the hospital chain. Sahyadri has 2,500 clinicians and 3,500 support staff, with cofounders Apte, Bapat, and Desai still involved. The chain, founded in 1994, has an expected ebitda of Rs 210 crore and a revenue of Rs 1,200 crore in FY25.
Ontario Teachers’ is a global investor with net assets of $178 billion, managing retirement money for 340,000 teachers and staff in Canada. The sector has seen a wave of PE-led consolidation in India, with Manipal Hospitals, the second-largest hospital chain, on an acquisition spree. In 2023, Manipal acquired an 84% stake in AMRI Hospitals for Rs 2,400 crore. KKR made a comeback in 2022 by acquiring BMH Hospital in Kerala for Rs 2,500 crore.
India’s healthcare industry has seen impressive growth, with a CAGR of approximately 22% since 2016. Projections indicate the home healthcare sector reaching $21.3 billion by 2027. Public health expenditure is expected to rise to 2.5% of GDP by 2025.
