HCG acquires Vizag-based MGCHRI for Rs 4,140 mn

Visakhapatnam: HealthCare Global Enterprises Limited (HCG), one of the largest cancer care networks in India, on Friday announced the acquisition of Mahatma Gandhi Cancer Hospital & Research Institute (MGCHRI) here for an enterprise value of Rs 4,140 million.

HCG will have initial 51 per cent stake in MGCHRI, with plans to complete the acquisition of the additional 34 per cent stake over the next 18 months. This strategic move entails leadership in a highly attractive micro-market with high quality primary catchment supported by large draining secondary catchment from neighbouring States of Odisha and Chattisgarh.

Established in 1986, MGCHRI has emerged as the leading provider of comprehensive cancer care in Vizag with the highest market share. The acquisition is poised to significantly bolster HCG's annual EBITDA by Rs 3 per share and gain a leadership position with a dominant share in Vizag Region.

The hospital boasts 196 operational beds and features advanced medical infrastructure, including two LINAC machines, one PET CT scanner, one Robotics Surgery System, and a dedicated Bone Marrow Transplant (BMT) unit. Its clinical team comprises 31 doctors, including 12 surgical, six radiation and four medical oncologists.

Dr Murali Krishna Vonna, Managing Director & Chief Surgical Oncologist, MGCHRI said, "Today marks a significant milestone for MGCHRI as we join forces with HCG, a leader in oncology care."