HCG to Acquire Vizag Cancer Hospital at INR 414 Crore Valuation
- 29th Jun 2024
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![HCG to Acquire Vizag Cancer Hospital at INR 414 Crore Valuation](https://www.ghar.tv/blog/pics/1626.jpg?1725758109)
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Mumbai:
HCG, India's largest specialty cancer care chain, announced on Friday its agreement to acquire the 196-bed Mahatma Gandhi Cancer Hospital and Research Institute (MGCHRI) in Visakhapatnam.
DEAL TO ESTABLISH LEADERSHIP POSITION IN THE REGION
Purchase of 51% Stake Now, 34% More in 18 Months
Deal Valuation and Acquisition Details
The deal values MGCHRI at an enterprise value of INR 414 crore. HCG will initially acquire a 51% stake for INR 207.6 crore, with plans to purchase an additional 34% stake for INR 155 crore over the next 18 months. The remaining stake will be acquired later based on the shareholders' agreement.
Financial Highlights
Revenue from Operations (FY24): INR 120.2 crore
EBITDA (FY24): INR 42.2 crore HCG stated that this acquisition is set to boost the cancer chain’s annual EBITDA by INR 3 per share and secure a dominant market share in the Vizag region.
Along with MG Hospital's management, HCG aims to optimize capacity and add over 25 additional beds.
Growing Demand for Private Cancer Care in Vizag
Private cancer care services in Visakhapatnam are experiencing significant demand, growing at over 15% annually.
Established in 1986, MGCHRI, led by onco-surgeon Dr. Murali Krishna Voonna, has 196 operational beds and advanced medical infrastructure, including:
- 2 LINAC (linear accelerators) machines
- 1 PET CT scanner
- 1 Robotics Surgery System
Dedicated Bone Marrow Transplant (BMT) unit
HCG’s Network and Reach Headquartered in Bengaluru, HCG is the largest cancer care provider in India, with a network of 21 comprehensive cancer centers across India and Africa.
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