US-based investment firm Kohlberg Kravis Roberts (KKR) has agreed to acquire a controlling stake in India-based healthcare organisation Healthcare Global Enterprises (HCG) for $400m.
KKR and HCG have signed definitive agreements with CVC, a private markets manager.
Under the terms of the agreement, KKR will acquire up to 54% of equity in HCG from CVC Asia V at a price of INR445 ($5.14) per share.
As part of the transaction, HCG founder BS Ajaikumar will be appointed as non-executive chairman and will focus on clinical, academic and research and development.
The transaction is expected to be completed by the third quarter of 2025, subject to customary closing conditions and regulatory approvals.
Upon closing, KKR is expected to become the largest shareholder in HCG, with a 54 to 77% equity stake, and become the sole controller of its operations.
KKR partner and India private equity head Akshay Tanna said: “HCG is a pioneer in cancer care in India and has established itself as an important healthcare provider in the country for the past three decades.
“As healthcare continues to be a thematic focus for KKR in India, our investment in HCG will support the development of medical infrastructure and the delivery of critical oncology services and care to more patients in the country.
“We look forward to leveraging KKR’s global healthcare expertise to strengthen HCG’s offerings and working with Dr. BS Jaikumar to further enhance HCG’s clinical excellence.”
According to the Securities and Exchange Board of India’s (SEBI) takeover regulations, KKR will offer to purchase additional equity shares in HCG from public shareholders.
Established in 1989, HCG is one of the large-scale oncology hospital networks in India, comprising 25 cancer centres across 19 cities, for the diagnosis and treatment of cancer.
The cancer centres contain infrastructure, including 2,500 beds, nearly 100 operating theatres and 40 linear accelerator machines (LINACs).
The transaction is KKR’s latest investment in India’s healthcare space and is funding the investment from its Asia Fund IV.
HCG founder BS Ajaikumar said: “I want to thank CVC for their support through the years, helping the management to put HCG in the strong position it is in today.
“I am delighted to welcome KKR, with their investment and operational expertise in healthcare in India and globally, as a majority shareholder in HCG.
“I will focus on clinical aspects involving multi-disciplinary approach to cancer care, and research and development; and look forward to the journey of HCG where it continues to stay at the forefront of clinical excellence, research, and academics.”
Last year, KKR agreed to acquire up to 65% shares in India-based multi-speciality hospital network Baby Memorial Hospital (BMH) for a price ranging between $280m and $300m.
