TPG Growth, the middle market and growth equity platform of alternative asset firm TPG, has an agreement to sell Cancer Treatment Services International (CTSI) to NYSE-listed 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 to close in about two weeks, TPG said in a statement.
The American Oncology Institute network under CTSI currently has 11 single-speciality oncology hospitals in India and South Asia, and another six are under execution. CTSI employs more than 1,500 people across its operations in India and the US, and fulfils 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.
“CTSI’s growth story is an example of what we are trying to achieve through AHH, which is to provide dynamic single-speciality healthcare companies the resources and expertise to meaningfully build and scale their businesses,” he added.
CTSI owns and operates a network of cancer treatment facilities across India and South Asia, including several brands.
These include American Oncology Institute, CTSI’s flagship network which comprises multi-disciplinary radiation, medical and surgical oncology-focused cancer hospitals across South Asia.
When CTSI was first acquired by TPG Growth, it operated one facility in Hyderabad.
The success of CTSI builds on the track record of TPG’s healthcare investing franchise around the world, which has invested $14 billion of equity in the sector. More than 20 per cent and 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 statement added.
Recently, AHH acquired Nova Fertility and its network of 20 IVF centres 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, it said.