Fortis's Acquisition of Wockhardt Hospitals
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Case Code: BSTR357 Case Length: 17 Pages Period: 2008-2009 Pub Date: 2010 Teaching Note: Not Available |
Price: Rs.300 Organization: Fortis Healthcare Ltd., Wockhardt Hospitals Group Industry: Healthcare, Hospitals Countries: India Themes: Growth strategy, Mergers and Acquisitions |
Abstract Case Intro 1 Case Intro 2 Excerpts
"The acquisition is expected to provide operating synergies and unleash new opportunities for growth, apart from delivering pan India presence to Fortis."
- Fortis Healthcare Ltd., in August 2009.
"Fortis would probably gain a lot from this acquisition, with presence, expansion, and with so much profitability accruing. Fortis will have this readymade business coming to them at a time when there is a huge demand."
- Vikas Dandekar, chief pharma correspondent, PharmaAsiaNews.com, in August 2009.
Fortis Gains a Pan-India Presence
On August 24, 2009, India-based Fortis Ltd. (Fortis), a hospital chain established by the promoters of Ranbaxy Laboratories Limited (RLL), acquired 10 hospitals of the Wockhardt Hospitals Group (Wockhardt Hospitals), a subsidiary of Wockhardt Ltd. (Wockhardt), for Rs.69.09 billion. The deal included the three nursing colleges of Wockhardt Hospitals.
Commenting on the deal, Malvinder Mohan Singh (Singh), Group Chairman, Fortis and Religare Enterprises Limited8, said, "This landmark deal is an important milestone in the history of Indian healthcare as it brings together two leading brands to create a national healthcare delivery network. This partnership will enable the vast pool of medical talent and quality healthcare infrastructure under the Fortis network to deliver a superior value proposition to the citizens of our country!" The acquisition was described by experts as the biggest in the Indian healthcare industry. The acquisition was expected to benefit both Fortis and Wockhardt Hospitals.
Besides expanding its network of hospitals, Fortis would have a presence in the southern, eastern, and western states of India thereby fortifying its position as one of the leading healthcare providers in India...
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