Healthcare Global Enterprises: CVC Capital Partners to Sell 54% Stake to KKR
Deal News | Feb 24, 2025 | CVC Capital Partners
CVC Capital Partners has agreed to the sale of up to a 54% stake in Healthcare Global Enterprises (HCG) to KKR, a global investment firm, marking a significant transaction in India's healthcare sector. The sale price is set at INR 445 per share, with the deal potentially valuing up to US$400 million. HCG, founded in 1989, is a leading oncology hospital chain in India, operating 25 medical centres with extensive infrastructure. Since CVC Asia V invested in HCG in 2020, CVC's India team has implemented a transformational value creation program, focusing on digital transformation, revenue growth, and patient care improvement. Post-transaction, HCG's founder, Dr. BS Ajai Kumar, will become the Non-Executive Chairman, concentrating on clinical, academic, and R&D excellence. CVC's Managing Partner, Siddharth Patel, expressed pride in the firm's role in supporting HCG's growth and transformation.
Sectors
- Healthcare
- Private Equity
Geography
- India – HCG operates extensively within India, making it the central geography of the transaction.
- Global – CVC Capital Partners and KKR are international private equity firms, adding a global dimension to the transaction.
Industry
- Healthcare – HCG is a leading oncology hospital chain in India, indicating the primary focus of the industry involved in the transaction.
- Private Equity – CVC Capital Partners and KKR are global private equity firms involved in this significant transaction, classifying the article within the private equity sector.
Financials
- US$400 million – The estimated value of the transaction for the sale of up to a 54% stake in HCG.
- INR 445 per share – The purchase price per share agreed upon in the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CVC Capital Partners | Selling Company | Company | A leading global private markets manager agreeing to sell a majority stake in HCG. |
| Healthcare Global Enterprises (HCG) | Target Company | Company | One of India's largest oncology hospital chains being sold in this transaction. |
| KKR | Bidding Company | Company | A leading global investment firm acquiring a majority stake in HCG. |
| Dr. BS Ajai Kumar | Non-Executive Chairman | Person | Founder of HCG who will become Non-Executive Chairman post-transaction. |
| Siddharth Patel | Managing Partner | Person | CVC's Managing Partner who commented on the transaction. |