TPG Growth, the middle market and growth equity platform of alternative asset firm TPG, will sell its portfolio company Cancer Treatment Services International (CTSI) to New York-based Varian Medical Systems for $283 million (Rs 1,972 crore).
CTSI is part of Asia Healthcare Holdings (AHH), a healthcare operating platform founded by TPG Growth. The transaction is expected to close in about two weeks and is subject to customary closing conditions, said a company statement.
TPG had acquired CTSI in April 2016. AHH also owns Bengaluru-based Rhea Healthcare, which operates a network of hospitals for women and children under the ‘Motherhood’ brand and Nova IVI Fertility, the country’s second largest network of infertility centres.
CTSI operates the American Oncology Institute in Hyderabad and 10 multidisciplinary (radiation, medical and surgical oncology) cancer centres across the Indian subcontinent a US-based Oncology Solutions division that provides cancer care professional services to healthcare providers worldwide, and AmPath, an integrated reference laboratory and pathology services provider in India. CTSI employs more than 1,500 people across its operations in India and the US. CTSI generated annual revenue of $43.5 million in FY19.
“We invested in CTSI in 2016 with the belief that the company was in a strong position to address a substantial and growing need for quality cancer care in India. Today, CTSI is one of the largest and leading providers of high-quality oncology services across the country and broader South Asia,” said Matthew Hobart, Partner at TPG Growth. Since 2016, CTSI has expanded into a network of 11cancer hospitals, with a pipeline of six more facilities under execution.
Source: Economic Times