Comeback in hospital space: KKR picks up 70% in BMH for Rs 2K crore

Global investment firm KKR on Monday said that it will acquire a controlling stake in Kerala's multi-speciality hospital chain Baby Memorial Hospital (BMH). According to sources, KKR picked up a 70 per cent stake in BMH for Rs 2,000 crore. This marks the re-entry for KKR in the Indian hospital segment after it sold its entire stake in Max Healthcare for around Rs 9,400 crore in 2022.

KKR did not disclose the deal size or other details.  

Sources, however, said that KKR has picked up around 70 per cent stake in BMH for Rs 2,000 crore. This transaction further shows that India is a key investment market for KKR — it has deployed over $12 billion in 38 investments since 2006, with more than $8 billion invested in the last four years alone.

KKR’s investment aims to support BMH’s expansion plans to build a pan-India network of hospitals. This growth will be driven by both organic development and strategic acquisitions.

Speaking on this, Akshay Tanna, partner and head of India Private Equity, KKR, stated: “Our investment in BMH reflects our continued thematic focus on healthcare in India. This investment will aid BMH in expanding its network of hospitals and continuing to invest in medical infrastructure so that its medical services can reach more patients in India. 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.”

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BMH, founded in 1987 by KG Alexander, is a multi-specialty hospital chain in Kerala, with a capacity of 1,000 beds across healthcare facilities in Calicut and Kannur. The hospital chain offers medical services through 40 specialised departments, including cardiology, oncology, neurology, gastroenterology, paediatrics and orthopaedics. BMH is renowned for its top-tier medical infrastructure and holds multiple quality accreditations.

Alexander 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.”

This Rs 2,000 crore investment is managed through KKR’s Asian Fund IV. KKR’s previous investments include Healthium (medical devices firm), Infinx (revenue solution provider), JB Pharma (pharma), and Gland Pharma (pharma) in India; PHC (medical equipment) and Bushu Pharma (CDMO) in Japan, and Metro Pacific Hospitals (hospital chain) in the Philippines.