Apollo Hospitals is India’s largest hospital chain, with 10,261 beds. Manipal and Columbia together will have 7,200 beds. Columbia Asia, owned by Seattle-based investment group Columbia Pacific Management, started operations in India in 2005 and has 11 hospitals across Bengaluru, Mysuru, Kolkata, Gurugram, Ghaziabad, Patiala and Pune.
‘Columbia Asia deal will help Manipal get more foreign patients post Covid’
The combined entity will have 27 hospitals spread across 15 cities. It will have 4,000 doctors and 10,000 employees.
“This is the start of an exceptional journey for us and together with Columbia Asia, we are now bigger, stronger and uniquely positioned to meet the growing expectations of the communities we serve across the country,” said Pai, who is chairman of the Manipal Education and Medical Group (MEMG).
For Manipal, backed by private equity firm TPG, the deal comes after two attempts to go national in the last few years through the acquisitions of Fortis and Medanta. Manipal did not reportedly agree on the Rs 6,000 crore that Medanta was asking for. Malaysia’s IHH Healthcare outbid it to buy Fortis. TPG Capital and Singapore’s sovereign wealth fund Temasek Holdings own about 25% and 18%, respectively, in Manipal Health. Last year, TPG, together with Malaysian conglomerate Hong Leong, bought out Columbia Asia Hospitals in Malaysia, Indonesia and Vietnam for $1.2 billion. So TPG now has a large healthcare portfolio across Asia.
Manipal Hospitals CEO Dilip Jose said the deal will also help the group get more foreign patients as and when Covid-19 subsides. Currently, about 10% of the hospital’s topline is from such patients. All Columbia Asia Hospitals in India will be rebranded as Manipal. Dan Baty, chairman of Columbia Pacific Management, said: “From day one, we focused on building a culture of putting the patient first to deliver highest quality healthcare with integrity and exceptional service. This combination of Columbia Asia and Manipal Hospitals is very exciting because of the strong cultural alignment between the two companies — and the opportunity it provides for continued growth.”
Last month, another entity of Columbia Pacific Management that operates senior living communities — Columbia Pacific Communities — had said it was tying up with property developer Embassy to establish senior living projects in India.