Mumbai: 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.
CTSI is part of Asia Healthcare Holdings (AHH), a healthcare operating platform founded by TPG Growth. The transaction is expected close approximately two weeks and is subject to customary closing conditions, said a company statement.
Asia Healthcare Holdings, the platform backed by TPG Growth and Temasek Holdings, also owns Bengaluru-based Rhea Healthcare, which operates a network of hospitals for women and children under the ‘Motherhood’ brand and Nova IVI Fertility - India’s second largest network of infertility centres.
In 2018, Sheares Healthcare, wholly-owned by Singapore based Temasek, invested $50 million to buy a minority stake in Asia Healthcare Holdings (AHH).
CTSI owns and operates a network of cancer treatment facilities across India and South Asia. Brands include the American Oncology Institute, CTSI’s flagship network comprised of multi-disciplinary radiation, medical, and surgical oncology focused cancer hospitals across South Asia; US-based CTSI Oncology Solutions, which provides cancer treatment planning 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.
“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 11 cancer hospitals with a pipeline of six more hospitals under execution.
With a $14 billion worth investment in healthcare sector, TPG owns stakes in Manipal Hospitals, Parkway Holdings (Singapore), Healthscope (Australia), Asiri Health (Sri Lanka), and United Family Healthcare (China).
“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 the future of these companies by giving them the right management teams, capitalization, and profitable growth trajectory,” said Vishal Bali, CEO of Asia Healthcare Holdings.