Global investment firm KKR has signed definitive agreements to acquire a controlling stake in Baby Memorial Hospital (BMH), a regional multi-specialty hospital chain in India. Although the exact financial terms were not disclosed, sources indicate that KKR paid between $280-300 million for over 65% ownership in the hospital.
KKR’s investment aims to bolster BMH’s efforts in providing quality, accessible healthcare across India, supporting its vision of developing a leading pan-India hospital network through both organic and inorganic growth strategies.
Akshay Tanna, Partner and Head of India Private Equity at KKR, highlighted that this investment aligns with KKR’s ongoing focus on the healthcare sector in India. He expressed optimism that the partnership with BMH’s founder, Dr. K G Alexander, and his family will facilitate the expansion of BMH’s hospital network and enhance medical infrastructure to serve more patients nationwide.
This marks KKR’s second foray into the Indian hospital sector, following its successful exit from Max Healthcare in 2022, where it achieved returns close to five times its initial investment, culminating in a final stake sale worth $1.1 billion.
Established in 1987 by Dr. K G Alexander, BMH operates hospitals in Calicut and Kannur, with a total capacity of 1,000 beds and plans for further regional expansion. The hospital chain offers a wide range of specialized treatments across 40 medical and surgical departments, including cardiology, oncology, neurology, gastroenterology, pediatrics, and orthopedics. BMH is known for its top-tier medical infrastructure and holds multiple quality accreditations.
Tanna emphasized that KKR’s extensive network and healthcare expertise will be instrumental in driving BMH’s next phase of growth and increasing its impact on local communities. Dr. Alexander echoed this sentiment, expressing confidence that the collaboration with KKR will accelerate BMH’s growth and service expansion across India, while continuing to uphold high standards of patient care.
As reported by The Hindu, KKR’s investment in BMH is facilitated through its Asian Fund IV. Beyond Max Healthcare, KKR’s healthcare investments in India include medical devices company Healthium, tech-enabled healthcare revenue solutions provider Infinx, JB Pharma (which it is reportedly looking to exit), and Gland Pharma. Internationally, KKR has invested in Japan’s PHC, Bushu Pharma, and the largest private hospital chain in the Philippines, Metro Pacific Hospitals.