TPG Growth on Tuesday said it had signed a definitive agreement to sell Cancer Treatment Services International (CTSI) to NYSE-listed Varian Medical Systems for $283 million.
CTSI is a part of Asia Healthcare Holdings (AHH), a healthcare operating platform founded by TPG Growth.
The Palo-Alto based Varian makes medical devices and software, focusing on cancer with devices for radiotherapy, radio-surgery, proton therapy, and brachytherapy (prostate cancer).
The company had revenues of $2.9 billion in FY18. Varian follows the October-September accounting period.
The transaction is expected to close in approximately two weeks and is subject to customary closing conditions.
When CTSI was first acquired by TPG Growth, it operated one facility in Hyderabad. In just three years, the company has grown to a network of 11 cancer hospitals with a pipeline of six more hospitals under execution.
The hospitals are operated under the American Oncology Institute brand, offering multi-disciplinary radiation, medical, and surgical oncology-focused cancer hospitals across South Asia. CTSI also offers an integrated reference laboratory and pathology services in India under AmPath brand.
CTSI employs more than 1,500 people across its operations in India and the US.
“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, the CEO of Asia Healthcare Holdings.
“Leveraging TPG’s global healthcare franchise, we worked together to grow CTSI from sourcing to exit,” Bali said.
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 centres which, when combined with AHH’s existing network of 12 women and children hospitals under the Motherhood brand, will be India’s largest mother and child-focused healthcare platform in India.
TPG has invested $14 billion of equity in the sector. More than 20 percent and approximately $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).