KKR takes controlling stake in India’s cancer care giant Healthcare Global Enterprises in $400m deal

In a landmark deal set to transform India’s oncology landscape, KKR, a global investment giant, has signed definitive agreements to acquire a controlling stake in Healthcare Global Enterprises (HCG), one of India’s largest cancer care providers. The transaction, valued at $400 million, will make KKR the largest shareholder in HCG, reinforcing its strategic focus on expanding healthcare investments in India.

Under the terms of the agreement, KKR will acquire up to 54% of HCG’s equity from CVC Asia V, purchasing shares at INR 445 per share. In compliance with the Securities and Exchange Board of India’s (SEBI) Takeover Regulations, an open offer will be conducted to allow public shareholders to sell additional shares, potentially increasing KKR’s total ownership to 77%. The deal remains subject to regulatory approvals and is expected to close by the third quarter of 2025.

Why Is Healthcare Global Enterprises a Key Investment for KKR?

Healthcare Global Enterprises, headquartered in Bengaluru, has built a reputation as a pioneer in cancer care. Founded in 1989, HCG operates 25 advanced cancer centers across 19 cities, offering specialized oncology treatments to patients across India. Its state-of-the-art infrastructure includes 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator (LINAC) machines, making it one of the country’s most comprehensive cancer care providers.

HCG’s integrated approach to oncology care, combining cutting-edge technology, research, and clinical expertise, has positioned it as a leader in the sector. Its presence in both metropolitan and tier-2 cities has allowed it to bring specialized cancer treatments closer to millions of patients, addressing a critical healthcare gap in India.

KKR’s decision to invest in Healthcare Global Enterprises aligns with its broader strategy of strengthening healthcare infrastructure in high-growth markets. With the rising cancer incidence rates in India and increasing demand for advanced oncology care, HCG represents an opportunity for KKR to expand its healthcare portfolio while supporting the delivery of critical medical services.

How Will Leadership Changes Impact HCG’s Future?

As part of this transition, Dr. BS Ajaikumar, the founder of HCG, will assume the role of Non-Executive Chairman, shifting his focus to clinical excellence, research, and development. He has emphasized that patient well-being and clinical advancements will remain at the heart of HCG’s operations.

Dr. Ajaikumar acknowledged CVC’s contributions, stating that their support helped HCG expand its oncology network and enhance cancer treatment accessibility. With KKR stepping in as the majority shareholder, he believes the company will further elevate its expertise in multi-disciplinary cancer care and oncology research.

KKR’s Akshay Tanna, Partner and Head of India Private Equity, highlighted that HCG’s reputation as a leading cancer care provider made it an ideal addition to KKR’s healthcare investment portfolio. He noted that the firm would work closely with HCG’s leadership team to enhance clinical capabilities and operational efficiencies.

What Does KKR’s Acquisition Mean for India’s Healthcare Sector?

The investment in Healthcare Global Enterprises is part of KKR’s broader commitment to expanding healthcare infrastructure in India. Over the years, KKR has made significant investments in Indian healthcare companies, including Max Healthcare, Baby Memorial Hospital, Healthium, Infinx, JB Pharmaceuticals, and Gland Pharma.

With India’s growing healthcare needs, private equity firms have increasingly focused on hospital networks, medical technology, and pharmaceutical companies. KKR’s latest move signals a stronger push into oncology care, given that India faces a rising cancer burden and requires specialized treatment centers to meet growing patient demand.

By leveraging its global healthcare expertise, KKR aims to strengthen HCG’s operational framework, expand its medical services, and introduce innovative treatment solutions. The investment is also expected to improve access to advanced cancer care in underserved regions, bridging gaps in specialized oncology services across the country.

What Role Did CVC Play in HCG’s Growth?

CVC, a leading private markets investment firm, had previously acquired a controlling stake in HCG at a pivotal time, supporting the company’s expansion strategy. Siddharth Patel, Managing Partner at CVC, stated that their investment helped transform HCG into a premier healthcare provider, strengthening its ability to deliver high-quality oncology treatments.

Amit Soni, Partner at CVC, emphasized that their collaboration with Dr. Ajaikumar and the HCG management team played a critical role in expanding cancer treatment accessibility in India. With KKR stepping in as the new majority shareholder, CVC is exiting its investment, signaling a strategic shift towards new growth opportunities.

What Are the Next Steps for Healthcare Global Enterprises?

With KKR assuming control, HCG’s immediate priorities include strengthening its oncology services, investing in research and innovation, and expanding its cancer care network to new regions. The company is also expected to enhance its digital healthcare capabilities, integrating telemedicine and AI-driven diagnostics to improve patient outcomes.

Regulatory approvals remain a key factor in finalizing the transaction. The acquisition must receive a green light from SEBI and other governing bodies before KKR can fully execute its strategic vision for HCG.

What Lies Ahead for KKR and HCG?

As KKR takes control of Healthcare Global Enterprises, the deal is set to reshape India’s cancer care ecosystem. By leveraging HCG’s existing expertise and KKR’s global investment capabilities, the partnership aims to enhance oncology treatments, expand medical infrastructure, and drive innovations in cancer care.

With India’s healthcare sector evolving rapidly, KKR’s investment marks a significant step toward bridging gaps in cancer treatment accessibility while positioning HCG for long-term growth. The transaction, expected to close by Q3 2025, will further solidify KKR’s role as a key player in India’s healthcare investment landscape.