TPG teams up with Malaysian strategic for SE Asia hospital buyout
TPG Capital and Malaysian conglomerate Hong Leong Group have agreed to buy Columbia Pacific Management’s Southeast Asia hospital business for approximately $1.2 billion.
Columbia Asia Healthcare has 17 hospitals and one clinic – with a total capacity of 1,400 beds – in Malaysia, Indonesia, and Vietnam. Malaysia accounts for the bulk of the business. There are also 11 hospitals, with 1,200 beds, in India. The India assets are not part of the transaction, according to a statement from Mitsui & Co, an investor in Columbia Asia.
Most of the hospitals are two-floor facilities with 100 to 200 beds. They offer a wide array of medical services, including general surgery, pediatrics, obstetrics and gynecology, orthopedics, and internal medicine. Columbia Asia was established in 1996 by Seattle-based entrepreneur Daniel R. Baty. The Baty family and Mitsui each own about 26% of the company. Mitsui first invested in 2016.
Columbia Pacific has healthcare interests across Asia as well as a company that provides medical support services in isolated environments globally and a wine business in the Pacific Northwest. In addition to Columbia Asia, healthcare assets include a China hospital portfolio and senior care businesses in China and India. Columbia China was established in 2016 in collaboration with Temasek Holdings, which invested $250 million.
Hong Leong has exposure to financial services, hospitality and leisure, manufacturing and distribution, and property. It also has a principal investment business. TPG is currently deploying its seventh Asia fund, which closed this year at $4.6 billion. The PE firm’s other healthcare investments in the region include clinical trials specialist Novotech and a pathology labs business, both based in Australia, while TPG Growth has a dedicated services platform called Asia Healthcare Holdings.
In July, TPG sold a portfolio of Chinese hospitals – United Family Healthcare – to New Frontier Corporation for $1.3 billion.
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