ASG buys 2 eyecare hospitals, says planning to buy 10 more

ASG Eye Hospitals, backed by PE investors General Atlantic and Kedaara Capital, said it has completed acquisitions of two eye care hospitals - Garg Ophthalmic Centre in Lucknow, Uttar Pradesh and Kapil Eye Hospital in Ambala, Haryana - and is in the process of conducting due diligence to acquire 10 more eye hospitals in next six months.

ASG didn't disclose the financial details of the two acquisitions in Lucknow and Ambala.

The Jaipur, Rajasthan-based pan-India specialty eye chain is lining up around Rs 500 crore, to fund expansion that includes a mix of organic and a string of acquisitions.

In an interview to ET, Dr Arun Singhvi, chairman and managing director of ASG said the company plans to establish a network of more than 200 hospitals within the next 36 months through a combination of organic and inorganic.

"(Our) typical (ticket) size (of (acquisition) would be north of 5 crore EBITDA (earnings before interest taxes depreciation and amortization) to Rs 25-30 crore Ebitda," Singhvi said.

Singhvi said out Rs 1000 crore capital allocation for expansion, 50% will be for buying Vasan Eye Care, and 50% will be for both organic and acquisitions. ASG has more than 50 specialty eye hospitals across 16 states in India, as well as in Uganda and Nepal.

Singhvi said the company expects the completion of Vasan Eye Care acquisition within a month, which will add around 97 eye hospitals to the network, giving it a strong presence in South India.

Lenders of Vasan Eye Care had approved ASG's ₹520 crore proposal to acquire the debt-ridden chain Vasan Eye Care under the bankruptcy law.