Narayana Hrudayalaya , a prominent Indian healthcare company, has successfully completed the acquisition of Practice Plus Group Hospitals in the United Kingdom, marking a significant expansion into the UK hospital market. This strategic move represents a full takeover of Practice Plus Group's hospital operations, solidifying Narayana Hrudayalaya's presence in the international healthcare sector.

Acquisition Details

The company disclosed the completion of this acquisition through a regulatory filing under SEBI regulations. Here are the key details of the transaction:

Transaction Process

The acquisition process involved several steps:

1. Initial Agreement: On October 30, 2025, Narayana Hrudayalaya entered into a Sale and Purchase Agreement (SPA) to acquire Practice Plus Group Hospitals Limited.

2. Closing Conditions: The company fulfilled all necessary conditions stipulated in the SPA.

3. Payment: The consideration was paid to the seller as per the agreement terms.

4. Share Transfer: Upon completion, all 60,001 equity shares, representing 100% of the paid-up share capital of Practice Plus Group Hospitals Limited, were transferred to Narayana Hrudayalaya UK Ltd.

Strategic Implications

This acquisition is a significant move for Narayana Hrudayalaya, as it:

• Marks the company's entry into the UK hospital market
• Expands its international footprint beyond its existing operations
• Potentially allows for the transfer of expertise and best practices between Indian and UK healthcare systems

Corporate Structure

Post-acquisition, the group structure is as follows:

• Narayana Hrudayalaya Ltd. (India)
  • India Health City Cayman Islands Ltd. (Cayman Islands)
    • Narayana Hrudayalaya UK Ltd. (UK)
      • Practice Plus Group Hospitals Ltd. (UK)

Each entity in this structure is a 100% subsidiary of its parent company, creating a clear line of control from the Indian parent to the newly acquired UK operations.

This strategic acquisition aligns with the global expansion trends seen in the healthcare sector, where companies seek to diversify their geographical presence and leverage cross-border synergies. As Narayana Hrudayalaya integrates Practice Plus Group into its operations, stakeholders will be keen to observe how this move enhances the company's international portfolio and impacts its overall growth strategy.

Narayana Hrudayalaya , a prominent Indian healthcare provider, has made a significant move into the UK healthcare market with the acquisition of Practice Plus Group Hospitals for £183 million. This strategic acquisition marks Narayana Hrudayalaya's entry into the mature UK healthcare sector and positions the company for potential growth in the European market.

Key Acquisition Details

• Target Company: Practice Plus Group Hospitals Limited
• Acquisition Cost: £183 million
• Market Position: 5th largest private healthcare network in the UK
• NHS Ranking: 4th largest NHS healthcare service provider

Strategic Importance

The acquisition of Practice Plus Group (PPG) Hospitals offers several strategic advantages:

1. Market Entry: Provides immediate access to the UK healthcare market, which is currently witnessing a shift towards day care procedures and increased private pay penetration.

2. Asset-Light Model: PPG operates an asset-light model focused on day care procedures, aligning with current market trends.

3. NHS Contracts: The acquisition includes existing NHS contracts, providing a stable revenue stream and established relationships with the UK's public healthcare system.

4. Growth Potential: With 50% available capacity, there's significant room for scaling operations and enhancing private-pay presence.

Financial and Operational Highlights

Integration and Future Plans

Narayana Hrudayalaya plans to leverage its digital Athma platform to drive efficiency and growth in the acquired operations. The company will retain all secondary care management and key corporate employees of Practice Plus Group to ensure continuity and facilitate future growth.

Financing

The acquisition is primarily financed through leverage:

• Debt Amount: ~£150 million
• Tenor: 7 years

Market Outlook

The UK healthcare market presents favorable conditions for this acquisition:

1. NHS Waiting Lists: Significant increase in NHS waiting lists, from 4.57 million in March 2020 to an estimated 7.42 million by August 2025.
2. Private Healthcare Growth: The private outpatient and daycare market is expected to grow from £11 billion in 2022 to £15 billion by 2025.
3. Shift to Private Pay: Increasing contribution from private payors, indicating a growing market for private healthcare services.

This acquisition positions Narayana Hrudayalaya to capitalize on these market trends and potentially become a leading private healthcare provider in the UK, leveraging its existing NHS relationships and expanding its private pay services.

The move represents a significant step in Narayana Hrudayalaya's international expansion strategy, diversifying its revenue streams and applying its healthcare expertise in a new market context.