Narayana Health acquires UK's Practice Plus Group Hospitals for £183m

Narayana Hrudayalaya Limited has announced the acquisition of 100% of Practice Plus Group Hospitals Limited (PPG) for approximately £183 million. The deal implies a 9.2x FY25E EV/EBITDA multiple on currently operational centers. PPG is the fifth largest private healthcare network in the UK, specializing in secondary care with committed NHS contracts, and is projected to grow at 12% year-on-year over the next five years. The transaction is financed through approximately £150 million in long-term debt with a seven-year tenor.

PPG is a critical partner to the NHS, operating as the fourth largest NHS healthcare service provider with around 1,300 doctors and clinical staff, 37 operating theaters, and 330 inpatient/outpatient beds. All facilities are rated "Good" or "Outstanding" by the CQC. In FY24, PPG reported revenue of £229 million, with a projected FY25E revenue of £250 million, demonstrating a 12% CAGR in revenue and 12.5% CAGR in Centre EBITDA over the last five years.

The acquisition offers Narayana Hrudayalaya a low-risk, value-accretive entry into a mature UK market, leveraging an asset-light day-care model focused on high-throughput indications. The company aims to utilize synergies from its operating model, including potential upside through technology implementation and new clinical offerings, to become a leading UK private pay provider.