Manipal Hospitals, one of India’s largest healthcare providers backed by Singapore’s Temasek Holdings, has agreed to acquire a majority stake in Sahyadri Hospitals from Ontario Teachers’ Pension Plan Board (Ontario Teachers).
The announcement confirms DealStreetAsia’s report in February that said Manipal Hospitals was among the frontrunners in the race to pick up Ontario Teachers‘ stake in Sahyadri.
The transaction, subject to regulatory approvals, will add Sahyadri’s network of 11 hospitals and over 1,400 beds to Manipal’s growing portfolio.
Financial terms of the deal were not disclosed. Alvarez & Marsal is serving as one of the financial advisors on the transaction.
The Canadian pension fund, which has an AUM of C$255.8 billion ($177 billion), acquired a controlling stake in Sahyadri Hospitals from its earlier investor Everstone Group in August 2022, marking its first control PE buyout in India.
Everstone acquired a controlling stake in Sahyadri Hospitals for an undisclosed amount in 2019.
Ontario Teachers has since supported the hospital chain’s transformation into a major regional healthcare player in Maharashtra. The group now treats millions of patients annually across Pune, Nashik, Ahilyanagar, and Karad.
During the three-year partnership, Sahyadri invested more than Rs 900 crore to enhance medical equipment, expand capacity, and extend access to high-quality care in tier-2 cities across Maharashtra, per the announcement.
“Our partnership with Sahyardi over the past three years underscores our belief in India’s growing healthcare needs and our commitment to empowering local champions and delivering high-quality, accessible care,” said Deepak Dara, senior managing director and head of India at Ontario Teachers.
Established in 1994, Sahyadri is one of the largest private hospital chains in Maharashtra, with multiple facilities in Pune, which happens to be its headquarters and the second-largest city in the state.
In November last year, Sahyadri acquired a smaller hospital in Maharashtra, marking its first reported acquisition since the Ontario Teachers’ funding.
Temasek invested in Manipal Hospitals in tranches, the latest transaction being sealed in 2023. Since then, the healthcare provider has been looking at expanding its presence through the M&A route, its prominent acquisitions being AMRI Hospitals, and Medica Synergie in the eastern parts of India.
Last year, Temasek offloaded an 8% stake in Manipal Health, paring its stake to 51%, when Mubadala and California Public Employees’ Retirement System invested in the hospital.
Going forward, Manipal Hospitals is also understood to be eyeing an IPO at a valuation of $7.5-8 billion.
