Narayana Hrudayalaya has acquired 100% of Practice Plus Group Hospitals Limited, the 5th largest private healthcare network in the UK. The acquisition is valued at approximately GBP 183 million and provides Narayana Hrudayalaya with a platform for growth in the mature UK market, leveraging day care procedures and increasing private pay opportunities. The deal is expected to close in the near future.
Strategic UK Acquisition
Narayana Hrudayalaya has announced the acquisition of 100% of Practice Plus Group Hospitals Limited, a leading healthcare provider in the UK. This acquisition marks a significant step in Narayana Hrudayalaya’s international expansion strategy, providing access to a mature healthcare market and leveraging existing expertise in efficient healthcare delivery.
Practice Plus Group Overview
Practice Plus Group (PPG) is one of the UK’s largest independent providers to the NHS, with three key divisions:
- Secondary Care
- Integrated Urgent Care (NHS 111)
- Health in Justice (healthcare in prisons and immigration removal centers)
The group is owned by Bridgepoint, a major private market growth investor. The acquisition positions Narayana Hrudayalaya as the 4th largest NHS healthcare service provider in the UK.
Deal Rationale
The acquisition is valued at approximately GBP 183 million, representing 9.2x FY25E EV/EBITDA multiple on currently operational centers.
Key strategic benefits include:
- Entry into the mature UK market, witnessing a shift towards day care procedures and increased penetration of private pay.
- Favorable doctor engagement model and asset-light operations.
Financing and Structure
The acquisition will be financed with approximately GBP 150 million through long-term debt with a tenor of 7 years.
The transaction is expected to close in the near term, with no pre-closing regulatory approvals required. A 6-month transition services agreement with Practice Plus Group will ensure continuity of services.
Financial Performance & Outlook
Practice Plus Group has demonstrated consistent growth, targeting 12% year-over-year growth over the last 5 years.
Key financial highlights:
- FY24 Revenue: £229 million
- FY25E Revenue: £250 million
Synergies and Future Growth
Narayana Hrudayalaya expects to leverage synergies from its existing operating model, including the implementation of its Athma technology platform and the introduction of new clinical offerings. The acquisition provides a strong platform for future growth and expansion in the UK healthcare market.
Source: BSE
