General Atlantic Set to Acquire Majority Stake in Amar Ujala’s Cygnus Healthcare

Ujala Cygnus Healthcare Services, established in 2011, operates 19 hospitals across Tier-II and Tier-III cities in Haryana, Uttar Pradesh, Uttarakhand, Jammu & Kashmir, and Delhi, boasting over 1800 beds.

Global private equity major General Atlantic is poised to acquire approximately a 70% stake in Ujala Cygnus Healthcare Services, a multi-speciality hospital chain based in Delhi and owned by media group Amar Ujala.

The deal, which values the chain at about INR 1600 Cr, includes the acquisition of a 51% stake held by existing investors Eight Roads Venture India, Evolvence India Fund, and Somerset Indus Healthcare Fund. General Atlantic will also acquire a small minority stake from the promoters, along with a primary stake.

Ujala Cygnus Healthcare Services, established in 2011, operates 19 hospitals across Tier-II and Tier-III cities in Haryana, Uttar Pradesh, Uttarakhand, Jammu & Kashmir, and Delhi, boasting over 1800 beds.

The hospital chain is anticipated to report a revenue of INR 600 Cr with an EBITDA of about INR 120 Cr in FY24. The deal is currently in the documentation stage and is expected to be signed in the coming weeks, with EY's investment banking arm advising the stake sale.

Amar Ujala acquired a majority stake in Cygnus Medicare in 2019, which operated a chain of 10 super speciality hospitals, for around INR 130 Cr as part of its expansion plans in the healthcare sector.

Following the buyout, two Ujala Healthcare hospitals were merged with Cygnus, and Amar Ujala held a significant stake in the merged entity, along with management control.

The balance stake was held by Eight Roads Ventures, Somerset Indus, Evolvence India, and previous promoters Dr Dinesh Batra and Dr Shuchin Bajaj.

The future plans of Ujala Cygnus Healthcare Services involve providing inclusive primary and preventive healthcare access across regions of Uttar Pradesh, Haryana, Uttarakhand, and Jammu & Kashmir.

According to the company's website, it aims to establish ten more hospitals in the next couple of years and is also eyeing significant expansion in Madhya Pradesh, Rajasthan, and Bihar.

General Atlantic, with previous exposure in the Indian healthcare space through investments in Rubicon Research, ASG Eyecare, and KIMS Hospitals, had invested $130 million in Krishna Institute of Medical Sciences (KIMS Hospitals) in 2018. The private equity firm exited KIMS after the chain was listed on Indian bourses.

In the previous year, General Atlantic, along with Kedaara Capital, acquired a significant minority stake in ASG Eye Hospitals, the largest eye care hospital chain in India, for INR 1500 Cr.