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Apollo acquires Nova Speciality in Rs 145 cr deal

Apollo acquires Nova Speciality in Rs 145 cr deal Apollo Health and Lifestyle Limited (AHLL), a wholly-owned subsidiary of Apollo Hospitals Enterprise Limited, has acquired Nova Specialty Hospitals in a deal which is worth in the range of Rs 135-145 crore. “Through this acquisition, AHLL endeavours to provide superior value to patients and doctors with an enhanced reach and high quality services. Nova Specialty Hospital’s existing centres will serve as new centres under the Apollo brand name and will benefit from Apollo’s legacy of expertise, clinical excellence and empathy,” said AHLL in a press release.

This acquisition fits into the growth strategy of AHLL providing a larger footprint, including in some markets where the company has no presence currently.

Sangita Reddy, joint managing director, Apollo Hospital Enterprises Limited, said, “AHLL is currently present in the secondary care segment through the day surgery & cradle formats. Given the immense potential and the need for quality healthcare delivery closer to the home, this acquisition will enable AHLL to significantly expand its footprint and will catapult it into a leadership position in this segment of healthcare. We believe the format has strong potential and with the brand equity of Apollo, combined with the deep hospital expertise we bring to bear, AHLL will grow this business significantly in the next few years.”

The acquired chain of Nova Specialty Hospitals is spread over eight cities and will add to the Apollo network 45 modular OTs. The combined network will clock a turnover between Rs 115-125 crores for the year ending March 2015 and the group synergies that Apollo brings to the table, management expects to break even in the next 18-24 months.

She added, “There is a strong synergy between Nova Specialty Hospitals format and the tertiary care hospitals and we intend to capture these synergies to the benefit of the patients we serve and doctors we partner with.”

The acquisition also marks the entry of Apollo in new markets such as Mumbai, Jaipur and Kanpur. In the coming months, Apollo will re-launch these centres with new branding, an expanded menu of services and quality systems built on Apollo’s deep expertise in the hospitals space, Reddy informed.

Neeraj Garg, chief executive officer, Apollo Health & Lifestyle Ltd, said, “AHLL is aiming to create a business of Rs 500 crores in five years in the space of multi-specialty short stay/day surgery centres.”

– PTI