Mumbai: Global investment firm KKR announced the acquisition of the India hospitals of Sweden-based healthcare and diagnostics company Medicover AB on Thursday for $1.39 billion. This will be their third hospital acquisition in as many years underscoring their role as a major consolidator in the healthcare sector. The divestment will also help the European chain to focus only in the continent where it is present in Poland, Germany, and Romania.
Established in 2017, Medicover India is a multi-specialty hospital network with 24 hospitals and approximately 4,800 beds across South and West India. It provides comprehensive care across more than 80 clinical specialties, supported by more than 1,900 doctors and advanced clinical infrastructure and technology, said the press statement.
ET had first reported the transaction on Thursday.
“We look forward to contributing to Medicover’s next phase by investing behind its talent, technology, infrastructure and clinical capabilities, while reinforcing strong clinical governance and operational standards,” said Akshay Tanna, head of India private equity, KKR.
KKR will not be using any of its existing hospital platforms-HCG or Baby Memorial-for this acquisition and keep it standalone.
Medicover entered the Indian healthcare market in 2017 by acquiring a controlling stake in Hyderabad-based Sahrudaya Healthcare, the operator of the MaxCure hospital chain. The parent company ABC Medicover Holdings holds about 67% stake, while the rest is owned by a team of founding doctors of Sahrudaya Healthcare led by Gundana and the company’s senior management.
In India, Medicover operates through the entity Sahrudaya HealthCare (SHPL).
“Through our investment, we look to support Medicover India’s doctors and employees in enhancing the quality of care they deliver, broadening access to advanced healthcare services, and improving patient outcomes for the communities the platform serves across India,” Tanna added.
Kotak Mahindra and Rothschild were the advisors in the transaction. “After careful consideration of alternatives for our India business, we have concluded that it is the right time to hand over the ownership to KKR,” said John Stubbington, CEO of Medicover. “This is a highly value creating transaction that will enable accelerated delivery on our strategy with focus on Europe. In addition, the transaction will ensure a stronger financial position with flexibility to capture attractive opportunities in those markets.”
In FY25, Medicover India reported revenue of $217.25 million, annual growth of 14%. It generated an Ebitda of $25.68 million, translating into an Ebitda margin of 11.82%. However, despite the positive operating performance, the company reported a net loss of $23.7 million, according to Tracxn.
The top two specialities, cardiology and neurology, accounted for 34% of SHPL’s in-patient revenues in FY2025.
