Private equity giant KKR (KKR.US) spends $400 million to acquire a majority stake in Indian cancer care services provider HCG.

Private equity giant KKR (KKR.US) will acquire a majority stake in India's Healthcare Global Enterprises Ltd. (HCG) from CVC Capital Partners for $400 million, making it the largest shareholder and sole operator of this Indian cancer care services provider. In a statement to the stock exchange last Sunday evening, HCG stated that KKR will purchase up to 54% of the company's shares from CVC at a price of 445 Indian Rupees per share. According to the statement, KKR will also publicly buy more shares from public shareholders. The statement added that this transaction could result in KKR holding up to 77% of HCG's shares, thereby giving the private equity firm full control over HCG's operations in India. HCG is one of India's largest cancer care services providers, operating 21 hospitals focused on cancer care in India. This deal highlights the growing interest in hospitals and healthcare service providers in India, catering to a population of over 1.4 billion. Major Indian companies like Adani Group are expanding their influence in the healthcare industry, which is expected to reach $638 billion by 2025. Akshay Tanna, KKR's India Private Equity Partner and Head, stated in the announcement, "As healthcare continues to be a key focus for KKR in India, our investment in HCG will support the development of India's healthcare infrastructure and provide essential cancer services and care to more patients." Apart from HCG, KKR's healthcare investments in India also include medical device manufacturer Healthium and Gland Pharma Ltd.