KKR to Acquire 54% Stake in Cancer Care Chain HCG for $400 Mn

The investment is expected to be finalized by the third quarter of 2025, pending regulatory approvals and customary closing conditions.

Private equity giant KKR has entered into a definitive agreement to acquire a controlling stake in Healthcare Global Enterprises (HCG), a leading cancer care hospital chain in India.

The $400 million (approximately Rs 3,465 crore) deal involves KKR purchasing up to 54% of the equity in HCG from CVC Asia V at INR 445 per share. The investment is expected to be finalized by the third quarter of 2025, pending regulatory approvals and customary closing conditions.

Upon completion of the transaction, KKR will become the largest shareholder in HCG and assume complete operational control.

Additionally, the firm will launch an open offer to acquire more equity shares from public shareholders, potentially increasing its stake to 77%.

Strategic Focus on Oncology Services

HCG, founded in 1989, operates 25 medical centers across 19 cities in India. It specializes in oncology care and has an infrastructure of 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines. The acquisition is expected to enhance the development of cancer care infrastructure and services.

"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," said Akshay Tanna, Partner, and Head of India Private Equity, KKR.

Dr BS Ajaikumar, founder of HCG, will transition to non-executive chairman following the transaction.

He emphasized the importance of clinical advancements in cancer care, stating, "I am delighted to welcome KKR, with their investment and operational expertise in healthcare in India and globally, as a majority shareholder in HCG. In my new role as Non-Executive Chairman, I will focus on clinical aspects involving a multidisciplinary approach to cancer care, and research and development."

The transaction remains subject to regulatory approvals and is anticipated to close by the third quarter of 2025.