KKR Buys Medicover India for $1.5B

KKR is poised to acquire the Indian operations of Medicover AB, a Swedish healthcare chain, in a deal valued between $1.4 billion and $1.5 billion. This strategic move represents KKR's third hospital acquisition within the last three years, signaling a strong focus on India's expanding healthcare market.

The transaction encompasses the purchase of a 100% stake from existing shareholders, alongside KKR's commitment to inject fresh capital for expansion and debt reduction. Approximately a quarter of the total investment, between ₹3,000-4,000 crore ($32-43 million), will be deployed as primary capital into the company.

Medicover India, operating under Sahrudaya HealthCare Pvt Ltd, manages a network of 26 hospitals boasting over 6,000 beds. These facilities are spread across Telangana, Andhra Pradesh, Maharashtra, and Karnataka, offering multispeciality and superspeciality care. The chain has grown by acquiring distressed assets and had previously considered a local IPO.

Despite a reported net loss of $23.69 million in FY25, Medicover India's revenue increased by 13% to $217.25 million, with an Ebitda of $25.68 million. The company's recent financial performance has been impacted by significant capacity expansions and the early operational stages of newer hospitals, leading to increased debt levels and modest debt protection metrics.