CVC has agreed to sell its majority stake in Healthcare Global Enterprises to KKR for INR 445 per share, with Dr. BS Ajai Kumar continuing as Non-Executive Chairman to drive further growth.

Target Information

CVC, a prominent global private markets manager, has reached agreements to sell its majority stake in Healthcare Global Enterprises (HCG), a leading healthcare organization in India, to KKR, a distinguished global investment firm. CVC Asia V plans to sell up to a 54% stake in HCG at a purchase price of INR 445 per share. Following the transaction, Dr. BS Ajai Kumar, the Founder of HCG, will assume the position of Non-Executive Chairman, where he will concentrate on enhancing clinical practices, academic initiatives, and research and development capabilities.

Founded in 1989, HCG has grown to become one of India's largest oncology hospital chains, operating 25 medical care centers across 19 cities. The organization boasts state-of-the-art infrastructure, including 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines (LINACs). Since CVC Asia V's investment in HCG in 2020, the CVC India team has collaborated intensively with HCG to implement a transformational value creation program aimed at driving revenue growth, improving key performance metrics, and initiating acquisitions and digital transformation while ensuring continuous enhancement in patient care and clinical outcomes.

Industry Overview in India

The healthcare sector in India has been experiencing rapid growth, fueled by an increasing demand for quality medical services, a growing middle-class population, and advancements in medical technology. With a burgeoning demographic profile, the country's healthcare indu