February 2025
Published: 25 Feb 2025
Author: Precedence Research
KKR has acquired a controlling stake in Healthcare Global Enterprises (HCG), one of India's preferred healthcare providers, for $ 400 million. The deal will reshape the oncology healthcare landscape in India and include KKR's purchases of up to 54 percent of HCG's equity from CVC Asia V for INR 445 per share. KKR will also make an open offer to acquire more shares from public investors, as per SEBI Takeover Regulations. Once completed, KKR's stake in HCG should range from 54 to 77%, qualifying the firm as of now for operating rights in the company.
Healthcare Global Enterprises (HCG), which was established in 1989, has progressed to that status as one of India's largest chains of cancer hospitals. HCG has established 25 medical centers all of which have advanced treatment facilities for cancer patients in 19 cities across India. Dr. BS Ajaikumar, the creator of this initiative, will now hold the title of Non-Executive Chairman, whilst dealing with clinical advancements, academic collaborations, research, and development initiatives. "I am grateful to CVC for the support and KKR for the expertise in healthcare investments, in further deepening the scope of impact for HCG," said Ajaikumar. According to Ajaikumar, his focus will be on clinical excellence and research.
Akshay Tanna, Partner and Head of India Private Equity at KKR has described the acquisition of HCG, India's pioneer in cancer care, as a strategically important move to fortify its presence in this sector. The acquisition will fuel the development of vital medical infrastructure and expand critical oncology services in India. The intervention of CVC as a leading private markets investor was instrumental in HCG's turnaround, fostering its growth and therefore enabling it to become one of the leading healthcare providers in India. CVC Managing Partner Siddharth Patel feels that KKR's investment will further boost the capabilities of the company, and he praised Dr. Ajaikumar as well as HCG's leadership team for their commitment to improving access to quality cancer care in India.
KKR's healthcare investment strategy involves acquiring HCG in India, which also boasts some other significant investments such as Baby Memorial Hospital, Healthium, Infinx, Max Healthcare, JB Pharmaceuticals, and Globe Pharma, among others. KKR's latest acquisition adds another link to the chain of incorporation within India's growing healthcare business. The transaction is expected to close in the third quarter of 2025, subject to necessary regulatory approvals and completion conditions. KKR will gain full operational control over HCG, marking a new beginning for the oncology provider once finalized. KKR's investment in Healthcare Global Enterprises indicates a bright new interrogatory chapter for the healthcare sector in India and more support to HCG to augment its oncology capabilities under the slightly encouraging umbrella of KKR's financial clout and vision. HCG will, under the guidance of an extremely strong leadership team and a legacy of clinical excellence, with KKR's worldwide expertise, continue its expansion into greater impact while persistently providing world-class cancer care for patients across India.
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