TPG to exit India cancer business for $283m

CTSI operates a network of cancer treatment facilities across South Asia under the American Oncology Institute brand, as well as US-based CTSI Oncology Solutions, which provides cancer treatment planning services to healthcare providers worldwide. The company employs more than 1,500 people in India and the US, with 11 operational cancer hospitals and six more under construction.

The company was AHH’s first asset after TPG Growth acquired a 65% stake in 2016 for $33 million. At the time, CTSI operated a single hospital. The firm has not disclosed the size of its exit multiple; the sale also includes Indian pathology and laboratory services provider AmPath, which TPG Growth acquired for an undisclosed amount in 2016.

“CTSI’s growth story is an example of what we are trying to achieve through AHH, which is to provide dynamic single-specialty healthcare companies the resources and expertise to meaningfully build and scale their businesses,” said Matthew Hobart, a partner at TPG Growth, in a statement. “The transaction today marks an exciting step for CTSI and an important milestone in AHH’s evolution as one of the leading healthcare platforms in South Asia.”

AHH is one of a handful of PE-sponsored platforms pursuing a buy-and-build strategy in Asia’s healthcare sector, particularly in emerging markets where demand for quality healthcare is expected to grow rapidly in the coming years. The platform is headed by Vishal Bali, former CEO of India’s Fortis Healthcare and founder of home healthcare start-up Medwell Ventures.

Recent acquisitions by AHH include Nova IVI Fertility, an India-based operator of in vitro fertilization clinics purchased earlier this year for an undisclosed amount. AHH also owns Rhea Healthcare, which operates 12 mother-and-child care centers under the Motherhood brand.

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• Topics
• South Asia
• Healthcare
• Trade sale
• India
• TPG Capital
• Exit