India-based Care Hospitals, backed by private equity firm TPG, has announced the acquisition of a majority stake in United CIIGMA Hospitals.
The transaction is valued at $37.81m (Rs3bn) to $50.41m (Rs4bn).
United CIIGMA runs a 300-bed multi-speciality tertiary care hospital in Aurangabad, a city in the Indian state of Maharashtra.
The hospital specialises in oncology, gastroenterology as well as cardiology. This apart, it also offers robotic surgeries.
The latest acquisition has enabled Care Hospitals to expand in the Maharashtra state. It will now have its presence in three cities of the state.
Care was launched as a single speciality cardiac hospital in 1997 in Hyderabad.
At present, the multi-speciality hospital network operates 17 healthcare facilities in eight cities and six states in India with as many as 2,700 beds.
The hospital network offers 30 clinical specialities in tier 2 cities.
Care Hospitals chairman Vishal Bali was quoted by media sources as saying: “The fast-growing tier 2 cities in the country have a current demand-supply gap of 50,000 beds which is likely to expand to 110,000 beds in the next five years.
“These cities represent the next phase of growth as consumers aspire for better healthcare services and Care Hospitals is very well positioned to consolidate and grow in these cities with its vintage and clinical acumen.
“Creating the right partnerships with leading providers in these regions and building scale in their ecosystems by adding clinical specialities and bed capacity is a priority for the group.”
Earlier this month, Care Hospitals acquired CHL Hospitals.