Fortis Healthcare Announces Acquisition of People Tree Hospital
Overview of the Acquisition
Gurugram: Fortis Healthcare Limited (“FHL” or “Fortis”), one of India’s premier healthcare delivery companies, has confirmed the signing of definitive agreements to acquire the 125-bedded People Tree Hospital in Yeshwanthpur, Bengaluru. This acquisition will be executed through a 100% purchase of TMI Healthcare Private Limited (“TMI Healthcare”), the entity managing the hospital’s operations. The transaction will be carried out by Fortis’s wholly-owned subsidiary, International Hospital Limited (IHL).
Details of the Transaction
As part of this comprehensive deal, IHL will acquire not only TMI Healthcare but also the hospital building and the land where People Tree Hospital operates. Additionally, an adjacent land parcel will be purchased from an independent third party. The total transaction value is estimated at INR 430 Crores, which includes the debt associated with TMI Healthcare. The acquisition is subject to customary closing adjustments as outlined in the definitive agreements.
About People Tree Hospital
People Tree Hospital is a prominent multi-specialty facility located in Yeshwanthpur, North-West Bengaluru. It is strategically situated within a densely populated residential area, surrounded by growing commercial hubs and offers excellent connectivity to major transportation routes. The hospital holds NABH accreditation and provides a range of key specialties, including Cardiac Sciences, Orthopedics, Neuro Sciences, Renal Sciences, and Gastroenterology. The acquisition of an additional approximately 0.8-acre land parcel presents the opportunity to expand the hospital’s capacity to over 300 beds.
Future Investment Plans
Fortis Healthcare plans to invest an additional INR 410 Crores over the next three years to enhance the facility’s bed infrastructure, medical equipment, and clinical programs, including the introduction of Radiation Oncology. With current hospital revenues estimated at around INR 74 Crores (FY 25), the company views this acquisition as a chance to bolster existing operations and improve revenue and profitability.
Timeline for Completion
The transaction is anticipated to be finalized by the end of January 2026, pending the fulfillment of specific conditions outlined in the definitive agreements.
Statements from Leadership
Dr. Ashutosh Raghuvanshi, MD & CEO of Fortis Healthcare, remarked, “The acquisition aligns with our vision to expand our footprint in focused clusters and allows us to leverage economies of scale and synergies. This strategically important addition will enhance our position in the Bengaluru market, where we currently operate seven facilities with the potential to increase bed capacity from 900 to over 1500 beds. The adjacent land will further enhance our healthcare delivery capabilities, enabling us to provide exceptional clinical care supported by our experienced clinicians.”
Dr. Jothi Neeraja, Founder, MD & CEO of People Tree Hospitals, stated, “People Tree Hospitals, co-founded with Dr. Upendra Kandluri, has always been driven by a vision of ethical, patient-centric, and high-quality care. The transition to Fortis Healthcare is a significant milestone in this journey, reflecting our commitment to clinical excellence and strong governance. With Fortis’ extensive resources and expansive clinical programs, People Tree Hospital is set to achieve new heights while maintaining its founding values, ensuring continuity and long-term benefits for both patients and employees.”