TPG Growth, the middle market and growth equity platform of alternative asset firm TPG, has signed an agreement to sell Cancer Treatment Services International (CTSI) to US-based Varian Medical Systems for $283 million. The sale marks the first exit of Asia Healthcare Holdings (AHH), the wellness investment platform it had founded in 2017 and that housed CTSI.
CTSI owns and operates a network of cancer treatment facilities under the brand American Oncology Institute across India and South Asia.
CTSI is part of Asia Healthcare Holdings (AHH), a healthcare operating platform founded by TPG Growth. The transaction is expected close in about two weeks and is subject to customary closing conditions. CTSI employs more than 1,500 people across India and the US, and fulfills a significant patient demand in the region for quality cancer treatment protocols.
“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.
When CTSI was first acquired by TPG Growth, it operated one facility in Hyderabad. In three years, with AHH’s support and the onboarding of a highly talented management team, the company has grown to a network of 11 cancer hospitals with a pipeline of six more under execution.
TPG has invested $14 billion of equity in the sector. More than 20 per cent, or about $3 billion of equity has been invested outside the US, across leading healthcare delivery networks including Parkway Holdings (Singapore), Healthscope (Australia), Manipal Health (India), 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 mold the future of these companies by giving them the right management teams, capitalization, and profitable growth trajectory. CTSI validates this unique approach to Indian healthcare,” said Vishal Bali, CEO of Asia Healthcare Holdings. “Leveraging TPG’s global healthcare franchise, we worked together to grow CTSI from sourcing to exit.”
AHH seeks to build a market-leading franchise in single-specialties across India and South Asia, and helps power companies through a single management team. AHH’s operation is unique to Indian healthcare and unparalleled in the region. Recently, AHH acquired Nova Fertility and its network of 20 IVF centers which, when combined with AHH’s existing network of 12 Women & Children hospitals under the Motherhood brand, will be India’s largest mother and child-focused healthcare platform in India.