AMRI Hospitals Kolkata set to be acquired by The Manipal Group

In a move preceded by extensive negotiations and extensive court battles, Manipal Health Enterprises has acquired Kolkata based AMRI (Advanced Medical Research Institute) Hospitals. The deal has been signed at a sum of 2,400 crore, according to sources cognizant of the transaction.

The takeover makes the Manipal Group the largest hospital chain in India. It adds 1,200 more beds to the Group's hospital portfolio, taking the total number to nearly 9,500 beds (from about  8,300 spread across 28 hospitals and establishments). The deal will also make Manipal the largest private hospital operator in East India, a region that functions as a healthcare gateway for Bangladesh, Nepal, Bhutan and the seven north eastern states.

"Manipal will pay about 75% of the transaction now and the remaining will be paid after a year as per the agreement. Also, all the cases against (AMRI promoter) Emami Group have been withdrawn," said the source. AMRI operates 1,200 beds through three multi-speciality hospitals in Kolkata and one in Bhubaneswar. Emami holds about 98% stake in AMRI.

Negotiations between Manipal and Emami began in 2018. In 2022, Manipal had agreed to buy AMRI for 1,800 crore. The Kolkata based Emami Group, however, had backed out from the agreement. This had led to arbitration proceedings for Manipal. Manipal subsequently approached the Delhi High Court in November, seeking to restrict the Emami Group from selling (or transferring its stake in AMRI) to any third party, or alter its management during the pendency of the arbitration proceedings. The two entities have finally reached a settlement, which also raises the value of the deal by 33%.

AMRI is Manipal’s third acquisition in three years. In 2020, it had obtained the Indian assets of Columbia Asia Hospitals for around 2,100 crore. In June 2021, the Manipal Group had also bought out Bengaluru based Vikram Hospitals from Multiples Private Equity for around 350 crore. Incidentally, the Manipal Group is also a front-running contender to acquire nearly 70% stake in Kerala Institute of Medical Sciences (KIMS) Health, a hospital chain in Kerala, from private equity investor True North.

*This pres release is published by VOH team.*