Manipal Hospitals to acquire Columbia Asia Hospitals

The transfer of ownership to Manipal Hospitals is expected to be completed post regulatory approvals

Manipal Hospitals, one of India’s largest multi-specialty healthcare providers, on Monday announced its intent to acquire a 100% stake in Columbia Asia Hospitals Private Limited (Columbia Asia).

The deal value is estimated at Rs 2,100 crore, Manipal Hospitals sources confirmed to DH.

Together, the combined entity will have a presence of 27 hospitals across 15 cities with 7,300 beds and a pool of 4,000 doctors and 10,000 employees, Manipal Hospitals said in a statement.

Treating over four million patients annually, it would rank among the largest healthcare provider networks in the country.

The acquisition of Columbia Asia also enables Manipal Hospitals to foray into the eastern India market.

"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," Dr Ranjan Pai, Chairman, Manipal Education and Medical Group, said in a statement.

Columbia Asia Hospitals Private Limited, a part of the US-based Columbia Pacific Management, Inc, is one of the early healthcare companies to enter India through 100% foreign direct investment route in 2005. The company currently operates 11 hospitals in India, including in Bengaluru, Mysuru, Kolkata, Gurugram, Ghaziabad, Patiala and Pune. The network comprises over 1,300 beds, 1,200 clinicians and 4,000 employees.

Allegro Capital Pvt Ltd were the advisors for Manipal Health Enterprise Pvt Ltd while Morgan Stanley advised Columbia Pacific. The transaction is subject to regulatory approvals.

"This combination of Columbia Asia and Manipal Hospitals is very exciting," said Dan Baty, Chairman, Columbia Pacific Management.