Fortis Healthcare buys People Tree Hospital in Rs 430-Cr deal
Fortis Healthcare has signed a pact to acquire the 125-bed People Tree Hospital in Bengaluru for Rs 430 crore through its subsidiary IHL. The deal strengthens Fortis’ presence in the city, with plans to expand capacity beyond 300 beds.
Fortis Healthcare has inked a pact to acquire Bengaluru-based People Tree Hospital for Rs 430 crore.
The company has signed definitive agreements for the acquisition of the 125-bedded hospital in Yeshwanthpur, Bengaluru, by way of a 100% acquisition of TMI Healthcare Pvt Ltd, the entity under which the People Tree Hospital business operates.
The said acquisition would be undertaken by Fortis’ wholly-owned subsidiary International Hospital Limited (IHL), it said in a statement.
The healthcare provider said an additional investment of Rs 410 crore is planned over the next three years in the facility to further augment bed infrastructure, medical equipment and clinical programmes, including radiation oncology, it added.
The acquisition of the adjacent land parcel of 0.8 acres provides the company with the potential to expand bed capacity to over 300 beds, it stated.
“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 MD and CEO Ashutosh Raghuvanshi stated.
The acquisition is a strategically important addition and will further strengthen the company’s position in the Bengaluru market, he added.
Fortis already has a significant presence with seven facilities in the city, with the potential to scale up to over 1,500 beds from 900 beds currently, Raghuvanshi said.
Alvarez & Marsal acted as the exclusive financial advisor to People Tree Hospitals on the acquisition by Fortis Healthcare.
The acquisition comes amid a broader surge in investment activity in India’s healthcare sector between 2022 and 2024, during which mergers, acquisitions and private equity deals crossed $30 billion, according to a Grant Thornton report.
Hospitals accounted for nearly 40% of the total deal value during this period, reflecting strong investor confidence in the sector’s long-term growth prospects.
In 2024 alone, hospital investments touched approximately $6 billion, marking a 24% year-on-year increase. The year also saw the largest healthcare transaction to date, with a $5 billion merger between Aster DM Healthcare and Quality Care India in 2024, underscoring a growing trend of consolidation as hospital chains seek scale, operational efficiencies and stronger regional dominance.