Global investment major KKR is set to acquire a controlling stake in Baby Memorial Hospital, a multi-specialty healthcare chain in India, per an announcement.
While the quantum of the stake picked up by the American firm was not officially disclosed, a report in The Economic Times on Monday said it was 70%. The report, citing sources, added that KKR paid $300 million for the stake.
The investment will facilitate the hospital’s plan to grow across India, thereby helping it create a network of hospitals through organic and inorganic routes.
Baby Memorial Hospital, headquartered in the southern Indian state of Kerala, was established in 1987. It has a capacity of 1,000 beds across hospitals in Calicut and Kannur. It provides services across 40 medical and surgical departments including cardiology, oncology, neurology, gastroenterology, paediatric and orthopaedic care.
“Our investment …reflects our continued thematic focus on healthcare in India,” said Akshay Tanna, Partner and Head of India Private Equity at KKR, which had earlier made investments in Max Healthcare. It exited the hospital chain in 2022, raking in around Rs 9,400 crore, which marked its largest exit from an Indian firm.
The funding “will aid Baby Memorial Hospital in expanding its network of hospitals and continuing to invest in medical infrastructure so that its medical services can reach more patients in India,” added Tanna.
Meanwhile, Dr KG Alexander, Founder and Chairman of Baby Memorial Hospital, said: “We are pleased to be able to tap into global and local experience in the healthcare sector, which will enable us to accelerate our growth and expand our services across India, and importantly continue to deliver excellence to the patients we serve.”
KKR made the investment from its Asian Fund IV, which closed at $15 billion in 2021. The transaction further builds on KKR’s track record in the healthcare sector in India and across the Asia Pacific, which includes investments in Healthium, a medical devices company; Infinx, a tech-enabled healthcare revenue solutions provider; and JB Pharma, a branded formulations pharmaceutical company in India.
