Fortis to acquire Bengaluru’s People Tree Hospital for Rs 430 crore
Acquisition involves a 100 per cent takeover of the hospital's holding company, TMI Healthcare Pvt Ltd, and will be carried out by Fortis’s wholly owned subsidiary, IHL
Healthcare major Fortis said on Saturday (December 20) that it has entered into an agreement to acquire the Bengaluru-based People Tree Hospital, a 125-bed facility, for Rs 430 crore.
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Under the transaction, Fortis will acquire the hospital infrastructure and underlying land from the promoters, along with an adjoining 0.8-acre land parcel from an independent third party.
100 pc stake acquisition
People Tree Hospital, an NABH-accredited facility, offers key specialities including cardiac sciences, orthopaedics, neurosciences, renal sciences, gastroenterology and paediatrics. Alvarez & Marsal acted as the financial adviser to People Tree Hospitals.
The acquisition involves a 100 per cent takeover of People Tree Hospital’s holding company, TMI Healthcare Pvt Ltd, and will be carried out by Fortis’s wholly owned subsidiary, International Hospital Limited (IHL), the company said in a statement. The transaction is expected to be completed by the end of January 2026.
Fortis said it plans to invest an additional Rs 410 crore over the next three years to further enhance the bed capacity, medical equipment and clinical programmes, including radiation oncology.
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The acquisition of the adjoining 0.8-acre land parcel will allow the company to expand bed capacity to over 300 beds, it added.
Strategic expansion in Bengaluru
“The acquisition is in line with our vision to expand our footprint in focused clusters and enables us to leverage the benefits of scale and synergies,” Fortis Healthcare Managing Director and CEO Ashutosh Raghuvanshi said.
He added that the acquisition is a strategically significant addition that will further strengthen the company’s position in the Bengaluru market.
Fortis currently operates seven facilities in the city and has the potential to scale up to over 1,500 beds from about 900 at present, Raghuvanshi said.
The move is aimed at strengthening the hospital chain’s presence in the Bengaluru cluster, including facilities operated under operations and maintenance (O&M) agreements.