TPG has acquired a minority stake in Dr. Agarwals Eye Hospitals
Dr. Agarwals Eye Hospitals
Dr. Agarwals Eye Hospitals is India’s largest chain of hospitals dedicated to eye care. Founded in 1957 in a single location in Chennai, India, the company has expanded its geographical footprint to 11 countries and over 12 states in India. Currently, Dr. Agarwals has 105 hospitals spread across India and Africa. The company has a team of over 400 ophthalmologists and 3,000 employees. The major types of surgeries offered include cataract, glaucoma, corneal, refractive and vitreo-retinal. They also offer a wide range of laser surgeries such as LASIK, IntraLase, ReLEx SMILE and Contoura for refraction correction.
The Deal
TPG and other investors have invested $136 million in Dr. Agarwals Eye Hospitals by way of issuance of new shares for primary investment in the company and acquisition of shares from other investors including ADV Partners. The company plans to expand its network to over 200 hospitals in the next three to four years using the proceeds. Further, the company will also be looking at acquisitions in key markets such as Maharashtra, Gujarat, Punjab, Karnataka, Andhra Pradesh and Telangana, India. In the international market, where it has 15 hospitals in Africa, the company aims to deepen its presence in countries such as Kenya, Mozambique, Tanzania and Ghana.
Ankur Thadani, Managing Director of TPG, stated, “We are proud to be partnering with the number one private eye care chain in the country to continue delivering critical care to a market that has a disproportionately high incidence of visual impairment.” Amar Agarwal, Chairman of Dr. Agarwals, said, “We are very excited to partner with TPG and Temasek and look forward to the next phase of growth of our company. Backing from such world-renowned marquee investors further strengthens our ideology of providing quality eye care to the people and bringing advanced technology to far-reaching corners of the country. The new investments will be used to expand our Indian and international footprint and deploy latest technologies for super-specialty eye care.”
Our Perspective
Gaurav Marathe, Managing Director in Lincoln’s Mumbai office, commented, “Eye care is a rapidly growing segment in the single specialty space. There has been heightened deal activity in this industry, both in India and globally. We are happy to have advised TPG’s investment in Dr. Agarwals Eye Hospitals, one of the largest and fastest-growing organized players in the country. TPG, the only global private equity fund with a single specialty-focused platform, has rich knowledge and vast experience which will be leveraged to support the growth of Dr. Agarwals. We will continue to work with TPG to identify inorganic growth opportunities for Dr. Agarwals.”
Lincoln supported TPG in evaluation of Dr. Agarwals’ business and the competitive landscape. Further, Lincoln played a critical role in analyzing the historical performance and building the growth plan for the business.
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