Global medical technology major Siemens Healthineers plans to exit the Hyderabad-based cancer care chain American Oncology Institute (AOI), multiple sources aware of the development told ET. The deal is expected to value the hospital chain around ₹1,500-2,000 crore.
Investment bank Alvarez & Marsal is advising Siemens on the transaction. Several private equity funds have been approached, and Healthcare Global Enterprises (HCG)-a KKR-backed listed cancer care chain-has also been sounded out as a potential bidder, said the sources cited above.
Read more: Aditya Birla group, KKR left in race for Sprng Energy
Non-binding bids should come in by the end of June, said the people cited above. AOI currently operates 16 hospitals across India with a combined capacity of around 500 beds. It also runs a facility in Sri Lanka and maintains partnerships with leading hospital groups, including Fortis, in Punjab. Its flagship hospital is in Hyderabad.
The potential sale comes amid broader strategic discussions within Siemens Healthineers. Bloomberg reported last year the company was in initial talks with major private equity firms, including Blackstone, CVC Capital Partners, and KKR, regarding a possible sale of its global diagnostics business in a deal that could exceed 6 billion (approximately $7 billion).
Founded in 2012 by a group of physicians and industry professionals, AOI was operated by Cancer Treatment Services International (CTSI). CTSI was acquired by Varian Medical Systems in 2019 from private equity firm TPG Growth. Subsequently, in 2021, Siemens Healthineers acquired Varian, bringing AOI under its portfolio.
Sources indicate that Siemens considers AOI a non-core asset and does not intend to continue operating the chain in India.
Both Siemens and HCG declined to comment on the development.
Siemens Healthineers primarily focuses on diagnostic imaging (including MRI and CT scans), laboratory diagnostics, therapeutic imaging, and digital health solutions. The company operates two manufacturing facilities in India-one in Vadodara for diagnostics and another in Bengaluru for medical imaging products.
Cancer Incidence
The Indian cancer care market is witnessing rapid growth. It was valued at around ₹1.25 lakh crore in 2024 and is projected to expand at a compound annual growth rate (CAGR) of 10-12% over the coming years. Cancer incidence is rising steadily, with some estimates suggesting that the actual number of cases may be up to three times higher than the officially recorded 2 million fresh detections in 2022, according to an EY report.
The growing disease burden is increasing demand for advanced yet affordable treatment options.
This trend is also driving significant private investment and expansion in specialised cancer care facilities across the country.
Investment bank Alvarez & Marsal is advising Siemens on the transaction. Several private equity funds have been approached, and Healthcare Global Enterprises (HCG)-a KKR-backed listed cancer care chain-has also been sounded out as a potential bidder, said the sources cited above.
Read more: Aditya Birla group, KKR left in race for Sprng Energy
Non-binding bids should come in by the end of June, said the people cited above. AOI currently operates 16 hospitals across India with a combined capacity of around 500 beds. It also runs a facility in Sri Lanka and maintains partnerships with leading hospital groups, including Fortis, in Punjab. Its flagship hospital is in Hyderabad.
The potential sale comes amid broader strategic discussions within Siemens Healthineers. Bloomberg reported last year the company was in initial talks with major private equity firms, including Blackstone, CVC Capital Partners, and KKR, regarding a possible sale of its global diagnostics business in a deal that could exceed 6 billion (approximately $7 billion).
Founded in 2012 by a group of physicians and industry professionals, AOI was operated by Cancer Treatment Services International (CTSI). CTSI was acquired by Varian Medical Systems in 2019 from private equity firm TPG Growth. Subsequently, in 2021, Siemens Healthineers acquired Varian, bringing AOI under its portfolio.
Sources indicate that Siemens considers AOI a non-core asset and does not intend to continue operating the chain in India.
Both Siemens and HCG declined to comment on the development.
Siemens Healthineers primarily focuses on diagnostic imaging (including MRI and CT scans), laboratory diagnostics, therapeutic imaging, and digital health solutions. The company operates two manufacturing facilities in India-one in Vadodara for diagnostics and another in Bengaluru for medical imaging products.
Cancer Incidence
The Indian cancer care market is witnessing rapid growth. It was valued at around ₹1.25 lakh crore in 2024 and is projected to expand at a compound annual growth rate (CAGR) of 10-12% over the coming years. Cancer incidence is rising steadily, with some estimates suggesting that the actual number of cases may be up to three times higher than the officially recorded 2 million fresh detections in 2022, according to an EY report.
The growing disease burden is increasing demand for advanced yet affordable treatment options.
This trend is also driving significant private investment and expansion in specialised cancer care facilities across the country.
