Manipal Hospitals, one of India’s largest multi-specialty healthcare providers, announced its intent to acquire 100% stake in Columbia Asia Hospitals Private Limited (Columbia Asia). The deal value is Rs. 2,100 crore. The transfer of ownership to Manipal Hospitals is expected to be completed post regulatory approvals. This makes Manipal the second largest healthcare provider after Apollo in terms of bed strength. Together, the combined entity will have 7,200+ beds as against Apollo’s 12,000 beds
The advisors for Manipal Health Enterprise was Allegro Capital and Columbia Pacific was advised by Morgan Stanley.
The strong clinical expertise and breadth of services of Manipal Hospitals, complemented by the strengths of Columbia Asia in clinical and service quality, will ensure that the integrated organization would be uniquely placed to improve access and address the growing demand for high quality tertiary and quaternary healthcare in the country.
Commenting on the deal, Dr Ranjan Pai, chairman, Manipal Education and Medical Group (MEMG), said, “Columbia Asia makes a compelling strategic fit to our core values of clinical excellence, patient centricity and ethical practices, and will help us advance our commitment to provide outstanding patient care. This is the start of an exceptional journey for us and together with Columbia Asia, we are now bigger, stronger and uniquely positioned to meet the growing expectations of the communities we serve across the country.”
Columbia Asia Hospitals commenced operations in India in 2005 in Hebbal, Bengaluru and presently operates 11 hospitals across the country in Bangalore, Mysore, Kolkata, Gurugram, Ghaziabad, Patiala and Pune. The network comprises of over 1,300 beds, 1,200 clinicians and 4,000 employees.
Sharing his views on the transaction, Dan Baty, chairman, Columbia Pacific Management said, “From day one, we focused on building a culture of putting the patient first to deliver the highest quality healthcare with integrity and exceptional service. This combination of Columbia Asia and Manipal Hospitals is very exciting because of the strong cultural alignment between the two companies – and the opportunity it provides for continued growth.”
Columbia Asia is one of the first healthcare companies to enter India through 100% foreign direct investment (FDI) route. It was founded and is managed by Seattle, WA (USA) based Columbia Pacific Management which developed an oversees healthcare businesses in India, China, SE Asia and Africa. Early this year, Columbia Pacific announced the sale of the Columbia Asia Hospitals in Malaysia, Vietnam and Indonesia to a joint venture between Hong Leong and TPG. It began operations in India in 2005 and currently operates 11 corporate hospitals and a teleradiology business.