The Krishna Institute of Medical Sciences (KIMS) will acquire a 51.07 per cent equity stake in private equity firm InvAscent-backed Sunshine Hospitals for ₹362.78 crore ($48 million).
“The acquisition will help KIMS Hospitals to consolidate its position as a leading provider of tertiary care services in its key markets and bring onboard an orthopaedic surgical team led by A. V. Gurava Reddy,” Hyderabad-based KIMS informed BSE.
Sunshine Hospitals currently operates at three locations in Telangana, out of which two are in Hyderabad (Secunderabad and Gachibowli), and the third is in Karimnagar, a fast-upcoming Tier 3 town. With a total bed strength of over 600, it is a leading player in the joint replacement and spine department with over 4,000 knee transplants conducted in a year.
“The acquisition deal is expected to be EPS-accretive and provides an enhanced platform for KIMS to further strengthen its presence in the key home markets of Hyderabad and Secunderabad,” KIMS said. The combined entity will have 12 hospitals across 9 cities with 3666 beds and over 1 .200 doctors and 12,000 employees. For the financial year ended March 2021, Sunshine Hospitals reported ₹4,118 million in revenue.
Commenting on the acquisition, Bhaskar Rao, MD, KIMS Hospitals said, “We are very pleased to have Sunshine Hospitals and its distinguished team of doctors, clinicians and staff on board. Sunshine Hospitals is a natural fit, clinically and strategically, to our vision of providing clinical excellence at affordable cost. lt will also allow KIMS to consolidate its position in Hyderabad, which is our core market.“
A. V. Gurava Reddy, MD, Sunshine Hospitals said, “We are excited to join K|MS Hospitals Group. We have a deep sense of admiration for KIMS’ commitment to provide high quality healthcare at affordable prices and we believe it fits well with the mission of Sunshine Hospitals.”
KIMS’s stock surged 6.22 per cent on the BSE on Thursday and is trading at ₹1,148.20. The Hindu BusinessLine