HCG, India’s largest speciality cancer care chain on Friday acquired controlling stake in 196-bedded Visakhapatnam-based cancer hospital Mahatma Gandhi Cancer Hospital and Research Institute (MGCHRI) for an enterprise value of Rs 414 crore.
HCG will have initial 51% stake in MGCHRI, with plans to complete the acquisition of the additional 34% stake over the next 18 months.
The revenue from operations of Visakhapatnam hospital for FY24, was Rs 120.2 crore with an EBITDA of Rs 42.2 crore. HCG said the acquisition is poised to significantly bolster cancer chain’s annual EBITDA by Rs 3 per share and gain a leadership position with a dominant share in Vizag region.
HCG along with MG Hospital’s management will work on optimizing capacity potential to add 25 plus additional beds.
Private cancer care services in Visakhapatnam has huge demand and is growing at 15+% y-o-y. Established in 1986, MGCHRI is les by onco-surgeon Dr. Murali Krishna Voonna. The hospital has 196 operational beds and features advanced medical infrastructure, including 2 LINAC (linear accelerators) machines, 1 PET CT scanner, 1 Robotics Surgery System, and a dedicated Bone Marrow Transplant (BMT) unit. Its clinical team comprises 31 doctors, including 12 Surgical, 6 Radiation, and 4 Medical oncologists.
HCG headquartered in Bengaluru, is the largest provider of cancer care in India with a network of 21 comprehensive cancer centers across India and Africa.
