Global investment firm KKR and Baby Memorial Hospital, a regional multi-specialty hospital chain in India, today announced the signing of definitive agreements under which funds managed by KKR will acquire a controlling stake in BMH. The financial details of the transaction were not disclosed but sources said that KKR had acquired over 65 per cent in the hospital paying anywhere between $280-300 million.

KKR’s investment will support BMH’s efforts to address the growing need for quality, accessible healthcare services in India by advancing its aim to build a leading pan-India network of hospitals, through both organic and inorganic growth strategies.

“Our investment in BMH reflects our continued thematic focus on healthcare in India,” said Akshay Tanna, Partner and Head of India Private Equity, KKR. He added this partnership with Baby Memorial’s founder K G Alexander and family will aid the hospital chain in expanding its network of hospitals and continuing to invest in medical infrastructure so that its medical services can reach more patients in India.

This is KKR’s second investment in the Indian hospital sector, having exited hospital chain Max Healthcare in 2022 with return close to five times its initial investment. It sold its last tranche of stake for a value of $1.1 billion, and was its most profitable investment in India.

BMH was founded in 1987 by Dr. K G Alexander, and has a capacity of 1,000 beds across hospitals in Calicut and Kannur, with planned expansions across the region. It provides comprehensive services with specialised treatment across 40 medical and surgical departments, including cardiology, oncology, neurology, gastroenterology, paediatric, and orthopaedic care. It has invested in top-quality grade medical infrastructure and has multiple quality accreditations across hospitals in its network.

“We look forward to drawing from KKR’s network and deep healthcare expertise to take BMH to its next phase of growth and deliver greater impact to its communities,” Tanna said.

“We are pleased to be able to tap into global and local experience in the healthcare sector, which will enable us to accelerate our growth and expand our services across India, and importantly continue to deliver excellence to the patients we serve,” said Alexander.

KKR makes its investment from its Asian Fund IV. Apart from Max Healthcare KKR has invested in medical devices company Healthium, tech-enabled healthcare revenue solutions provider Infinx, JB Pharma (where it is looking to exit according to reports), and Gland Pharma in India. Elsewhere, it has invested in Japan’s PHC, Bushu Pharma, and the largest private hospital chain in the Philippines Metro Pacific Hospitals.

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