TPG Growth, the mid-market and growth equity platform of private equity firm TPG, on Tuesday said it has signed a definitive pact with NYSE-listed Varian Medical Systems to sell its chain of cancer treatment hospitals, Cancer Treatment Services International (CTSI), for $283 million.
CTSI is run by TPG Growth-owned Asia Healthcare Holdings (AHH), which invests and helps build early-stage, single-speciality healthcare delivery businesses in India and South Asia. CTSI owns and operates a network of cancer treatment facilities in the region.
The transaction is expected to close in two weeks, TPG said in a statement.
“We invested in CTSI in 2016 with the belief that it was in a strong position to address the growing need for quality cancer care in India. Today, CTSI is one of the largest providers of high-quality oncology services across the country and broader South Asia," said Matthew Hobart, partner, TPG Growth.
The cancer care platform, which ran one facility in Hyderabad three years ago, has since grown to a network of 11 cancer hospitals with a pipeline of six more in India and South Asia.
CTSI owns brands such as the American Oncology Institute, US-based CTSI Oncology Solutions and AmPath, a laboratory and pathology services provider in India. The company has more than 1,500 employees in India and the US.
In India, AHH has invested in several healthcare companies including the recent acquisition of Nova Fertility, which operates India’s second-largest network of in-vitro fertilization centres with 20 facilities across 15 cities. The fund also invested in Bengaluru-based Rhea Healthcare Pvt. Ltd, an operator of hospitals for women and children under the ‘Motherhood’ brand.
“The genesis of AHH was to build single-specialty healthcare delivery businesses. Majority positions in these early-stage entities give our team the unique opportunity to mould their future by giving them the right management teams, capitalization, and profitable growth trajectory. CTSI validates this unique approach to Indian healthcare," said Vishal Bali, CEO of AHH.