HealthCare Global Enterprises acquires Andhra-based MGCHRI for Rs 414 cr

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2 minutes of reading Last updated: June 29, 2024 | 14:20 IST

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.

The company’s announcement shows that initially HCG will own 51%. shares in MGCHRI, and plans to acquire an additional 34 percent in the next 18 months. MGCHRI reported revenues of Rs 110 crore and Ebitda of Rs 40 crore for FY23, while interim data estimates them at Rs 120.2 crore and Rs 42.2 crore for FY24, respectively, as per HCG’s statement.

The move positions HCG as a leader in a highly attractive micro-market that benefits from a high-quality primary catchment area and significant secondary catchment area from neighbouring states.

“This partnership enhances our ability to provide state-of-the-art care in Vizag’s competitive healthcare environment. This strategic integration will not only strengthen operational efficiency, but also enable us to offer comprehensive, patient-centric care solutions. We are excited about the opportunities ahead and remain focused on improving healthcare outcomes for our patients while creating lasting value for our stakeholders,” said Raj Gore, CEO, HealthCare Global Enterprises.

The partnership aims to address the significant demand gap for radiotherapy equipment, which has a penetration rate of less than 0.6 per million in Andhra Pradesh and Orissa. With this acquisition, HCG intends to expand its multimodality programs and increase customer engagement. Leveraging operational synergies and economies of scale, the integration will leverage established technology platforms for digital marketing purposes.

First published: June 29, 2024 | 14:20 IST