Max Healthcare Enters Share Purchase Agreement for Acquisition of 550-Bed Sahara Hospital in Lucknow

Max Healthcare Institute Ltd. (MHIL), one of India's leading private healthcare providers, has officially announced a significant development in its expansion strategy. The company has successfully executed a binding Share Purchase Agreement (SPA) for the acquisition of a 100% stake in Starlit Medical Centre Pvt. Ltd. (Starlit), with an Enterprise Value of INR 940 Crores. This acquisition is facilitated through one of Max Healthcare's wholly owned subsidiaries, Crosslay Remedies Limited (CRL).

Starlit, through a previously established Business Transfer Agreement (BTA) with Sahara India Medical Institute Ltd, is set to transfer the Healthcare Undertaking, including the 550-bed Sahara Hospital in Lucknow, on a slump sale basis. The hospital is situated on a ~27-acre land parcel in Gomti Nagar, Lucknow, a prominent residential and commercial hub. Housed in a 17-storey building with a built-up area of ~8.9 Lakh sq ft., the hospital offers multi-disciplinary care across various specialties, including Gastroenterology, Neurology, Surgery, Cardiology, Pulmonology, and diagnostics facilities. Additionally, it features a Nursing College on the premises, offering GNM, BSc, and MSc courses with an annual intake of 100+ students.

Lucknow, known for its connectivity through an international airport, a network of highways, expressways, and railways, serves as a hub with access to major cities in Uttar Pradesh and other states. The city's healthcare landscape benefits from the presence of government hospitals, medical colleges, and private healthcare players, ensuring the availability of experienced medical talent.

This strategic acquisition marks Max Healthcare's entry into Lucknow, one of Uttar Pradesh's fastest-growing cities. The company plans to introduce high-end medical programs, including Oncology and Organ Transplants, while reinforcing existing programs such as Orthopaedics, Cardiac Sciences, Neurosciences, Renal Sciences, among others.

Commenting on the acquisition, Mr. Abhay Soi, Chairman and Managing Director of Max Healthcare Institute Ltd., expressed excitement about the strategic move, stating, "We are excited about this acquisition, which is in line with our strategy to enter new Tier I / II cities which have a developed healthcare services ecosystem. Given our track record of successful post-merger integration, we expect to quickly improve the operating and financial performance on the strength of medical excellence of our clinicians and continued patronage from our patients. Through our presence in Lucknow, we aim to bring quality healthcare to people of Uttar Pradesh."

The SPA has been executed by Crosslay Remedies Limited (CRL), a wholly owned subsidiary of MHIL, which already owns and operates Max Super Speciality Hospital, Vaishali, and Max Medical Centre, Noida. CRL was initially acquired by MHIL in July 2015 as part of the acquisition of the erstwhile Pushpanjali Crosslay Hospital in Vaishali. This acquisition reflects Max Healthcare's strategic vision for expansion and commitment to delivering quality healthcare services to diverse regions across the country.

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