KKR to acquire Medicover India in $1.5 billion deal
The transaction includes a sale of 100% stake by existing shareholders, as well as a commitment to deploy fresh capital to fund its growth and repay debt. In all, KKR will be spending Rs 13,000-14,000 crore, around quarter of which (Rs 3,000-4,000 crore) will go into the company as primary capital, said people aware of developments.
KKR plans to acquire Medicover India in a deal worth $1.5 billion, marking the investment firm's third hospital acquisition in recent years. The move aims to take advantage of increasing healthcare spending, demand for tertiary care services, and growing insurance penetration, positioning KKR as a consolidator in the market. The transaction involves the sale of 100% stake by existing shareholders and fresh capital deployment to fund growth and repay debt.
KKR's investment will total Rs 13,000-14,000 crore, with Rs 3,000-4,000 crore constituting primary capital. Medicover India operates 26 hospitals with over 6,000 beds across Telangana, Andhra Pradesh, Maharashtra, and Karnataka. The company, owned by ABC Medicover Holdings BV and the founding doctors of Sahrudaya Healthcare, reported a 13% increase in revenue to $217.25 million in FY25 while generating EBITDA of $25.68 million.
Despite positive operating performance, Medicover India posted a net loss of $23.69 million in FY25. KKR plans to diversify the speciality mix with departments like oncology and expects EBITDA growth to reach Rs 600 crore by FY28, driven by capacity expansions and new assets.
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