Radiant Life Care buys out Life Healthcare’s stake in Max Healthcare

Indian hospital management company Radiant Life Care, which is backed by global investment firm KKR, has completed its previously announced INR 4,298 crore acquisition of a stake of 49.7% in Indian hospital chain Max Healthcare Institute from South African hospital operator Life Healthcare.

Radiant Life Care funded the acquisition after securing an investment from KKR’s Asian Fund III.

Max India is the other stakeholder in Max Healthcare Institute, owning 49.7% as well.

As per the deal announced in December 2018, the healthcare assets of Radiant Life Care will be demerged and combined with that of Max Healthcare and Max India, thereby creating the largest hospital network in North India. This will result in KKR and Radiant Life Care’s promoter Abhay Soi together buying a majority interest in Max Healthcare.

Prior to the merger between Radiant Life Care and Max Healthcare, Max India will demerge its non- healthcare businesses, made up of Max Bupa and Antara Senior Living, into a new wholly owned subsidiary.

Max Healthcare is a hospital chain in India. Photo courtesy of Binodkpn/Wikipedia.org.

Abhay Soi – Chairman of Radiant Life Care and Max Healthcare said: “I am happy to have been able to complete the acquisition of Life’s stake in Max Healthcare as a first step towards integration of the two companies, and fortunate to have a PE firm such as KKR backing us in our journey.

“We believe we have all the wherewithal to grow our business organically and inorganically during this challenging phase for the healthcare sector.”

The merged entity will have 16 hospitals in India with more than 3,200 beds. The healthcare assets would include tertiary and quaternary care facilities that provide high end critical and super specialty care supported by local brands like BLK Hospital, Max Patparganj Hospital, Max Saket Hospital, Max Smart Hospital, and Nanavati Hospital.

Analjit Singh – Founder & Chairman of Max Group said: “Max Healthcare and Radiant possess complementary sets of capabilities in running healthcare establishments and KKR brings with its extensive global experience in healthcare investments and capabilities in prudent financial management.

“Radiant-KKR are the best suited partners to further the culture of clinical and service excellence that Max Healthcare has become known for. The merger and the future planned expansion will provide the scale that MHC needs for profitable growth at a time when healthcare margins are being tested.”

The process of merging Radiant Life Care and Max Healthcare and the eventual listing of Max Healthcare are in progress and is expected to be wrapped up in six-eight months, subject to getting the necessary approvals.