 "Mergers and acquisitions, M&A, deals")
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Cancer care HealthCare Global Enterprises Limited (HCG) has announced the acquisition of Mahatma Gandhi Cancer Hospital & Research Institute (MGCHRI) in Vizag, Andhra Pradesh, at an enterprise value of Rs 414 crore.
According to the company’s statement, HCG will initially hold a 51 per cent stake in MGCHRI, with plans to acquire an additional 34 per cent stake over the next 18 months. MGCHRI reported revenue of Rs 110 crore and Ebitda of Rs 40 crore for FY23, and provisional figures peg it at Rs 120.2 crore and Rs 42.2 crore respectively for FY24, according to HCG’s statement.
This move positions HCG as a leader in a highly attractive micro-market, benefiting from a high-quality primary catchment area and substantial secondary catchment from neighbouring states.
“This partnership enhances our ability to provide cutting-edge care in Vizag’s competitive healthcare landscape. This strategic integration will not only strengthen operational efficiencies but also enable us to offer comprehensive, patient-centred care solutions. We are excited about the opportunities ahead and remain focused on advancing healthcare outcomes for our patients while creating sustained value for our stakeholders,” said Raj Gore, CEO, HealthCare Global Enterprises.
The partnership aims to address the significant demand-supply gap in radiation therapy equipment, which has a penetration rate of less than 0.6 per million in Andhra Pradesh and Orissa. HCG aims to expand its multi-modality programmes and enhance customer engagement through this acquisition. By leveraging operational synergies and scale advantages, the integration will use established technology platforms for digital marketing.
First Published: Jun 29 2024 | 2:20 PM IST