In a significant development for India’s healthcare sector, global investment firm KKR has signed definitive agreements with CVC, a leading private markets manager, to acquire a majority stake in Healthcare Global Enterprises (HCG), one of India’s largest oncology hospital chains. This strategic move will see KKR become the largest shareholder in HCG and assume sole control of its operations, while Dr. BS Ajaikumar, Founder of HCG, transitions into the role of Non-Executive Chairman, focusing on clinical, academic, and research excellence.

As part of the transaction, KKR will acquire up to 54% equity in HCG from CVC Asia V at INR 445 per share. In accordance with the Securities and Exchange Board of India’s (SEBI) Takeover Regulations, an open offer will follow for KKR to purchase additional equity from public shareholders, potentially increasing its stake to 77%. This transaction marks another milestone for KKR’s investments in India’s healthcare sector, following past investments in Baby Memorial Hospital, Healthium, Infinx, Max Healthcare, JB, and Gland Pharma. The transaction is expected to close by the third quarter of 2025, subject to customary closing conditions and regulatory approvals.

Founded in 1989, HCG has established itself as a pioneer in cancer care, operating 25 medical care centers across 19 cities in India. With 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines (LINACs), the organization stands at the forefront of advanced oncology treatment. 

Dr. BS Ajaikumar expressed his optimism about this new partnership, stating, “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. Patient well-being and outcomes will always be a top priority for us at HCG, and in my new role as Non-Executive Chairman, I will focus on clinical aspects involving a multi-disciplinary approach to cancer care, and research and development.”

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KKR’s investment underscores its commitment to enhancing India’s healthcare infrastructure, with Akshay Tanna, Partner and Head of India Private Equity at KKR, emphasizing, “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 Ajaikumar to further enhance HCG’s clinical excellence.”

The transition from CVC to KKR also highlights the growth trajectory of HCG under CVC’s stewardship. Siddharth Patel, Managing Partner at CVC, noted, “We are proud to have supported HCG’s transformation at a critical juncture in time to build it into one of India’s leading healthcare organizations and the delivery of high-quality care to many patients over the years.” Amit Soni, Partner at CVC, added, “Our partnership with Dr. Ajaikumar and the management team is a testimony to the ability to combine clinical and professional acumen to increase the reach of cancer care in India.”

For the healthcare industry leaders, this acquisition signifies a transformative step in India’s healthcare ecosystem. KKR’s deep-rooted expertise and global reach are expected to drive innovation and operational efficiency, particularly in oncology care. HCG’s continued focus on clinical excellence, research, and development under Dr. Ajaikumar’s leadership will further strengthen India’s position as a hub for advanced healthcare solutions. Moreover, the investment aligns with the broader industry trend of integrating cutting-edge technologies and multidisciplinary approaches to patient care, setting new benchmarks for the healthcare sector in India.

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