Max Healthcare Institute Ltd., a leading healthcare provider based in New Delhi, has announced the acquisition of a 64% stake in Jaypee Healthcare Limited (JHL). This strategic move is part of a collaboration agreement with Lakshdeep Group, the promoter group of Jaypee Healthcare, which is currently under the Corporate Insolvency Resolution Process. The acquisition marks a significant step for Max Healthcare as it expands its footprint in the National Capital Region (NCR).
Key Details of the Acquisition
Max Healthcare’s acquisition includes a controlling stake in JHL, which operates the flagship 500-bed Jaypee Hospital located in Noida. Along with this, Max Healthcare also gains control of two additional hospitals in Bulandshahr and Anoopshahr, Uttar Pradesh. The total enterprise value of the acquisition is Rs 1,660 crore, and Max Healthcare has the option to acquire the remaining 36% stake in the future.
As part of the deal, Max Healthcare will also arrange financing to repay JHL’s financial creditors, further strengthening its financial position and operational capacity. In the financial year 2023-24, JHL reported a revenue of Rs 421 crore and an EBITDA of Rs 70 crore.
Expanding Healthcare Services in NCR
This acquisition is a crucial step in Max Healthcare’s strategy to expand its presence in the NCR, a region that is home to 46 million people and serves as a vital economic hub for India. Abhay Soi, Chairman and Managing Director of Max Healthcare, emphasized the importance of this acquisition, stating, “We are excited to build upon the legacy of Jaypee Hospitals and leverage our combined expertise to enhance patient care and expand access to quaternary healthcare services.”
Soi also mentioned plans to expand the Noida facility to 1,200 beds in the coming years, which would significantly increase the hospital’s capacity and improve access to quality healthcare services in the region.
Leadership’s Vision for the Future
Max Healthcare’s leadership is committed to ensuring that the acquisition of Jaypee Healthcare leads to sustainable growth and enhanced operational efficiency. “We remain focused on formulating a comprehensive strategy that addresses the demands of all stakeholders while prioritizing the delivery of quality healthcare services in a sustainable manner,” added Soi.
The deal is expected to be finalized within 30 days, in accordance with the revival plan approved by the National Company Law Appellate Tribunal (NCLAT). This acquisition is seen as a vital part of Max Healthcare’s long-term growth strategy, allowing the company to expand its services and continue providing high-quality healthcare to the growing population in the NCR.
