Fortis's Acquisition of Wockhardt Hospitals
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ExcerptsBackground Note
The AcquisitionWhen Wockhardt Hospitals put up 10 hospitals for sale in late 2009, it attracted the interest of several major hospitals chains, including Fortis, Apollo, and Manipal Hospital. Several reasons were attributed for this interest, the most important being the instant access to eight of its hospitals that were in operation (the remaining two were under construction)... The BenefitsThe main benefit to Fortis from the acquisition was getting a pan-India presence in the healthcare market. Sood added, "It's a good deal for Fortis as it gets entry to important new markets with best infrastructure and running hospitals."... Looking AheadMany experts unanimously hailed the deal as win-win for both Fortis and Wockhardt. Sood added, "The deal in one stroke has tremendously increased footprint, reduced competition, and allowed access to a great medical team and operational hospitals for Fortis. Had Wockhardt not needed the money to repay its debts, it would not have sold the hospitals like this at this point of time."... Exhibits
Exhibit I: Fortis's Timeline
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