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Major Acquisition on the Cards for HCG as EQT, TPG, & KKR Betting for Majority Stake

Written by : Aishwarya Sarthe

February 19, 2024

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According to sources close to the matter, the acquisition is under evaluation by these investment firms, with negotiations in progress.

Healthcare Global Enterprises (HCG), a Bengaluru-based specialty cancer hospital chain, is potentially on the brink of a significant acquisition deal.

Global buyout funds, including EQT, TPG Capital, and KKR, express interest in acquiring a controlling stake currently held by CVC Capital.

CVC Capital, a Luxembourg-based firm managing significant assets, currently holds approximately 60.41% stake in HCG, making it a pivotal player in this potential acquisition scenario.

According to an Economic Times report, the acquisition is under evaluation by these investment firms, with negotiations in progress.

Interest from Global Investors

Global buyout funds such as EQT, TPG Capital, and KKR have expressed interest in evaluating the acquisition opportunity, reflecting their strategic focus on the healthcare sector.

These funds have a track record of significant investments in the healthcare domain, with KKR's notable exit from Max Healthcare and TPG's involvement in Manipal being key examples. EQT, traditionally focused on tech and BPO deals, has also demonstrated a keen interest in healthcare, evident from its recent acquisitions in India's super specialty hospital and fertility services sectors.

Denouncing speculation on his exit, BS Ajai Kumar, founder, HCG, said, "There is no intention to exit. I have founded and built HCG, and am committed to the cause of serving cancer patients."

Despite challenges posed by the debt-fuelled expansion and the disruptive impact of the COVID-19 pandemic, HCG has shown resilience. The Cancer hospital chain reported revenue growth of 13% year-on-year in the nine months that ended December 31, with an EBITDA MARGIN of 17.3% during the same period.

Analysts anticipate further growth opportunities for HCG, particularly in the cancer care segment, driven by its dominant market presence and acquisitions.

Home Healthcare Initiative & Technological Advancements

In the previous year, HCG Cancer Centre introduced a unique home healthcare service exclusively for cancer patients across India. This service aimed to deliver professional and high-quality care directly to patients' homes, prioritizing personalized care and patient dignity. Services offered included nursing care, cancer screenings, diagnostic sample collection, and medicine delivery, with plans to expand to include additional care options.

Additionally, HCG launched the EVA-Braster Pro, a portable breast cancer screening device, as part of efforts to enhance early detection and patient care.

During the same period, HealthCare Global Enterprises Limited (HCG) strategically acquired SRJ CBCC Cancer Hospital in Indore, expanding its presence into Madhya Pradesh's healthcare landscape. This acquisition enhanced the hospital’s capacity and created opportunities for operational scale-up. This includes implementing organ-specific practices and introducing advanced cancer care technologies, aligning with HCGs to elevate the standard of cancer care.

Furthermore, HCG made headlines with its innovative healthcare services beyond traditional hospital settings. For instance, HCG Manavata Cancer Centre launched Manavata365 home healthcare services in Nashik, offering convenient healthcare solutions at patients' doorsteps.

The services include diet consultations, pharmacy services, lab tests, medical equipment rental, AI-based ECG tests, and even at-home x-ray services.

In September, Jaipur's HealthCare Global Enterprises (HCG) Cancer Centre unveiled an advanced linear accelerator system called Elekta Harmony Pro Radiotherapy Platform, which was the first of its kind in North India for cancer treatment.

This move aligned with the Centre's objective of providing world-class oncology care, allowing for personalized and high-quality treatment for a broader spectrum of patients across North India.


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