KKR Acquires Controlling Stake in Indian Healthcare Provider Healthcare Global Enterprises for $400 Million

KKR, a leading global investment firm, has announced its acquisition of a controlling stake in Healthcare Global Enterprises (HCG), India's leading oncology hospital chain, for approximately $400 million. The deal, expected to close by the third quarter of 2025, involves KKR acquiring up to 54% of equity in HCG from CVC Asia V at a purchase price of INR 445 per share. Following the acquisition, KKR will launch an open offer to purchase an additional 26% stake in HCG, potentially increasing its ownership to 77%.

Founded in 1989, HCG operates 25 medical care centers across 19 cities in India, with best-in-class infrastructure including 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines (LINACs). The company specializes in oncology-focused healthcare services, offering advanced cancer treatment, including radiation, medical, and surgical oncology, utilizing cutting-edge technology such as CyberKnife, TrueBeam STx, and PET-CT imaging.

Dr. BS Ajaikumar, HCG's founder, will transition to the role of Non-Executive Chairman, focusing on clinical, academic, and research and development excellence. CVC Capital Partners, which currently holds a 60.36% stake in HCG, will retain a 9% share post-transaction.

KKR's investment in HCG aligns with its long-term strategy in the Indian healthcare sector, particularly in specialized services like oncology. The acquisition allows KKR to capitalize on the growing demand for specialized healthcare services in India, driven by an aging population and increasing awareness of cancer and other chronic diseases. Additionally, the transaction marks a strategic move for KKR to consolidate its position in the Indian hospital sector, following its re-entry into the market with the acquisition of Baby Memorial Hospital in Kerala in 2024.

The acquisition of HCG presents KKR with several operational synergies and strategic initiatives to drive growth and enhance clinical excellence. These include:

1. Expansion of medical infrastructure: KKR can support HCG's expansion plans, potentially adding 900 incremental beds over the next four to five years, to capture growing market opportunities in India's cancer care sector.
2. Investment in advanced technologies: KKR can facilitate the adoption of advanced technologies in cancer care, such as CyberKnife, TrueBeam STx, and PET-CT imaging, to enhance HCG's clinical excellence and attract more patients seeking specialized treatment.
3. Operational improvements: KKR can help HCG improve operational efficiency, potentially leading to further margin enhancement. This aligns with HCG's recent financial performance, with revenues increasing at a CAGR of 17%.
4. Geographic expansion: KKR can support HCG's expansion into underserved markets, potentially increasing its patient base and market share in India's growing healthcare market.
5. Cross-pollination of best practices: KKR can share best practices and operational synergies from its existing healthcare portfolio, which includes Max Healthcare and Baby Memorial Hospital, to drive significant value creation and enhance HCG's clinical excellence.



The retention of Dr. BS Ajaikumar as Non-Executive Chairman is expected to contribute to maintaining clinical standards and fostering innovation in cancer care at HCG, while also allowing KKR to pursue operational improvements and expansion. Dr. Ajaikumar's continued involvement ensures that HCG's commitment to patient well-being and clinical excellence remains a top priority, even as KKR pursues operational improvements and expansion.

In conclusion, KKR's acquisition of a controlling stake in HCG marks a significant moment in the consolidation of specialized healthcare services in India. The transaction aligns with KKR's long-term investment strategy in the Indian healthcare sector, focusing on specialized services like oncology. With its global healthcare expertise and operational synergies, KKR is well-positioned to drive growth and enhance clinical excellence at HCG, while maintaining its commitment to patient well-being and clinical excellence.