CVC to sell 54% stake in Healthcare Global Enterprises for up to $400M

Global private markets manager CVC on Sunday said it has inked a pact to sell a 54% stake in Healthcare Global Enterprises to KKR for up to $400 million.

The company said it has inked definitive agreements for the sale of CVC Asia V's majority stake in Bengaluru-based Healthcare Global Enterprises (HCG) to KKR, a leading global investment firm. CVC Asia V will sell up to a 54% stake in HCG to KKR at a purchase price of Rs 445 per share, it said in a statement.

Following the completion of the transaction, HCG Founder B S Ajai Kumar will take on the role of Non-Executive Chairman and will focus on driving clinical, academic and R&D excellence, it added.

Founded in 1989, HCG is one of India's largest oncology hospital chains. It operates 25 medical care centres across 19 cities, including 2,500 beds.

Since CVC Asia V invested in 2020, CVC's India team has worked closely with HCG on a transformational value creation programme to drive revenue growth through and beyond Covid, improve key performance indicators, source and execute acquisitions and digital transformation, whilst ensuring continuous improvement in patient care and clinical outcomes.

Siddharth Patel, Managing Partner at CVC said, "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 organisations and the delivery of high-quality care to many patients over the years."

Ajaikumar said, "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 wellbeing and outcomes will always be a top priority for us at HCG, and in my new role as Non-Executive Chairman, I would focus on clinical aspects involving a multi-disciplinary approach to cancer care, and research and development; and look forward to the journey of HCG where it continues to stay at the forefront of clinical excellence, research, and academics," he said.

The transaction is expected to close in Q3 2025, subject to customary closing conditions and regulatory approvals.