Private equity firm TPG-backed Hyderabad-based hospital chain CARE Hospitals said it has acquired majority stake in Aurangabad-based United CIIGMA Hospitals for Rs 300-Rs 400 crore.
United CIIGMA operates 300 bedded multi-speciality teritiary care hospital in Aurangabad.
The acquisition of United CIIGMA will allow CARE managed by Evercare Fund to expand network in Maharashtra region.
Through this investment, CARE will be present across three cities in Maharashtra, and group’s network spans 17 healthcare facilities in 8 cities and 6 states in India with over 2700 beds.
CARE was incorporated in 1997 as a single speciality Cardiac Hospital in Hyderabad with 100 beds and 20 cardiologists. Since then, the group has evolved exponentially to become one of India’s leading multi-speciality hospital network with a focus on tier 2 cities offering 30 clinical specialities, 60% of the networks capacity is based in high-growth tier 2 cities of the country.
“The fast-growing tier 2 cities in the country have a current demand-supply gap of 50,000 beds which is likely to expand to 110,000 beds in the next 5 years,” said Vishal Bali, chairman, CARE Hospitals.
“These cities represent the next phase of growth as consumers aspire for better healthcare services and CARE Hospitals is very well positioned to consolidate and grow in these cities with its vintage and clinical acumen. Creating the right partnerships with leading providers in these regions and building scale in their ecosystems by adding clinical specialities and bed capacity is a priority for the group,” Bali said.
“GDP growth in some of these tier 2 cities is pushing faster than the national average,” he added.
