Concord Medical Services Hldg Ltd (ADR) (NYSE:CCM) announced a deal to acquire Fortis Surgical Hospital (FSH) in Singapore from the current owner Fortis Healthcare International Pte Ltd. The company disclosed that it will seek to change the name of the facility as soon as to closes the acquisition next month. CCM is seeking global expansion and the acquisition of FSH is one of its latest international expansion moves. The company hopes to add more services at the FHS facility and also include research and collaboration center there.
All cash transaction
Concord Medical Services Hldg Ltd (ADR) (NYSE:CCM) agreed to pay in cash to bring FSH under its control. The acquisition is expected to cost CCM about $39.8 million. Both the board of CCM and that of Fortis have approved the deal. If all goes well, CCM expects to close the deal by April 6, 2015.
Proposed immediate changes
As soon as Concord Medical Services Hldg Ltd (ADR) (NYSE:CCM) brings FSH under its armpit, it will embark on changing the name of the institution to Singapore Concord Cancer Hospital. Currently, FSH specializes in what are called minimally invasive procedures. Additionally, the facility also offers full spectrum of clinical services such as robot-assisted surgeries and laparoscopic.
In addition to the name change, the other thing that CCM plans to do immediately after taking over FSH is adding more medical specialties at the facility. Some of the specialties that will be added there include dermatology, respiratory, oncology and medicine among several others.
Benefits of the acquisition
The acquisition of FSH will also gift Concord Medical Services Hldg Ltd (ADR) (NYSE:CCM) with renowned surgeons in areas of advanced surgical procedures that include gynecology, colorectal, urology and general surgeries.
About 100 robot-assisted procedures have been successfully performed at SFH. The hospital facility was founded in 2012 and currently has patient bed capacity of 31.
Targeting Singapore and Chinese patients
According to Concord Medical Services Hldg Ltd (ADR) (NYSE:CCM)’s CEO, Dr. Jianyu Yang, the long-term plans for Singapore Concord Cancer Hospital is building it into a high-end treatment facility complete with academic research. They hope that the hospital will cater for Singaporeans patients as well as Chinese seeking treatment aboard.