Cancer care service provider HealthCare Global Enterprises Limited (HCG) has announced the acquisition of an additional 60.9 per cent in Suchirayu Healthcare Solutions, Hubli, Karnataka, to become a majority stake owner from its existing 17.7 per cent to 78.6 per cent.
Bengaluru-headquartered HCG primarily focuses on oncology, while Suchirayu owns a multi-speciality hospital in Hubli with an operational capacity of 110 beds and a potential to scale up to 250 beds, the company said in a statement.
"Hubli is an emerging geography with great potential, and the acquisition will deliver focused medical care into this micro-market. We continue to explore opportunities in the regional cancer leaders' space to consolidate our dominant position further," said BS Ajaikumar, Executive Chairman of HCG.
HCG has operated and maintained Suchirayu's hospital since August 2017 and had the right to increase its stake up to 80 per cent in July 2022, the company said.
"HCG continues on its path to optimise capital allocations around cancer care and strengthen its pre-eminent position around the length and breadth of the country. Having operated Suchirayu for the past four years with successful patient outcomes and desired financial results, acquiring a majority was a logical step in cementing our presence in the region," added BS Ajaikumar.
HCG also owns and operates a standalone cancer centre at Hubli, and the company expects to create synergetic benefits and market leadership through the acquisition.
"During this time, we have been able to more than double the revenue and enhance EBITDA margins to over 20 per cent from a single-digit margin since we took over the operations," said Raj Gore, CEO of HCG.
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