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
Excerpts
The Acquisition
When 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 Benefits
The 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 Ahead
Many 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
Exhibit II: Fortis' Financials
Exhibit III: A Note on the Indian Healthcare Industry
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