INDIA – ASG Eye Hospitals has expanded its market presence in India after completing its acquisition of the Chennai-based eye care chain Vasan Eye Care in a deal worth up to US$64 million (Rs 526 crore).
The resolution plan follows ASG’s acquisition spree, the hospital chain recently acquired two sizeable chains in North India further positioning itself as a significant healthcare platform.
In 2017, the National Company Law Tribunal (NCLT) ordered the commencement of insolvency proceedings against Vasan Eye Care, after it failed to repay the debt of over US$245M (Rs 2,000 crore) to creditors and suppliers.
The creditors dragged the case to NCLT to recover the dues, becoming the first case admitted in Chennai under the Insolvency and Bankruptcy Code (IBC).
With the approval of the National Company Law Tribunal (NCLT), ASG Eye Hospitals has taken operational control of Vasan Eye Care, thereby strengthening its position in the healthcare industry.
“ASG Eye Hospitals has a presence in Tier 2 and 3 cities and covers North and East India. The company plans to expand its presence in the West and South,” stated ASG.
The company will focus on Tier 2 and 3 towns to ensure access to quality eye care and help reduce the number of cases of complete vision loss.
The chain of super-specialty eye hospitals in India outbid MGM Healthcare, Maxivision Eye Hospital, and Dr Agarwal’s Health Care in the hotly contested resolution process.
Vasan Eye Care joins ASG’s existing network of hospitals, bringing the total count to over 150 facilities in 21 states across the country.
Jaipur-based ASG has over 50 eye hospitals across 16 states in India while Vasan Eye Care operates more than 97 centers at various locations across the country, including Tamil Nadu, Andhra Pradesh, Telangana, Kerala, and Karnataka.
According to the company statant, the acquisition of Vasan Eye Care will give ASG the widest geographical footprint among healthcare chains in India.
The combination of strong public health infrastructure and trained eye specialists utilizing the technological innovation in eye care will be essential in tackling the rising number of visual impairment and blindness cases in India.
Backed by General Atlantic, Kedaara Capital, and Foundation Holdings, the chain of super-specialty eye hospitals in India has plans to expand its healthcare business into new and underserved markets across the country.
Commenting on the Vasan acquisition, Aakash Sachdev, Managing Director of Foundation Holdings and Director of ASG Hospital Pvt. Ltd., said: “It is a unique opportunity to establish ASG as a world-class healthcare delivery platform with a scaled South India presence and truly PAN India reach.”
He pointed out that the Chennai-based eye specialty chain will be a perfect geographic fit with ASG, adding that Vasan Eye Care will benefit from ASG Eye Hospitals’ strategic vision, professional management, and operational expertise.
“ASG Eye Hospitals and Vasan Eye Care will play a significant role in achieving progress in eye health across India,” added Sachdev.