New Delhi, Sept. 22 -- Private equity firm KKR has acquired a stake in Kerala-based Meitra Hospital, as it rapidly expands its India healthcare platform that already includes Mumbai-listed oncology-focused chain Healthcare Global Enterprises Ltd and another Kerala chain Baby Memorial Hospital (BMH).
Meitra, part of KEF Holdings, said in a statement Monday that it has entered into "a strategic partnership" with KKR to join its India healthcare platform. It didn't disclose any terms of the transaction. However, KKR has likely agreed to buy a controlling stake in the hospital.
KKR has ramped up its India healthcare play in recent years, after exiting north Indian hospital chain Max Healthcare a few years ago. Last year, it picked up a controlling stake in BMH with the goal of creating a hospital platform mainly in southern India. In February, KKR agreed to acquire a controlling stake of 54% in Bengaluru-headquartered Healthcare Global from European PE firm CVC Partners. Earlier this month, VCCircle reported that BMH had struck a deal to pick up a controlling stake in a Vellore, Tamil Nadu-based hospital.
As part of the transaction, Meitra Hospital will continue investing in its expansion, including the establishment of an oncology centre, as well as the addition of new hospital beds and intensive care units. KEF said Faizal Kottikollon will remain as the chairman of Meitra Hospital.
"This strategic partnership with KKR's healthcare platform will enable us to accelerate that vision, expand our capabilities, and deliver even greater value to the communities we serve," Kottikollon said in the statement.
Separately, The Economic Times reported that KKR portfolio company BMH had acquired a significant majority stake in Kozhikode-based Meitra and that the deal could value Meitra in the range of Rs 1,000-1,200 crore.
Kozhikode-based Meitra was founded by Faizal Kottikollon in 2012. It runs a quaternary care hospital, which spans 450,000 sq. ft, hosting 220 individual patient rooms and suites. The hospital also has eight operation theatres and 52 individual intensive care units.
Meitra, operated by Premium Medical and Healthcare Providers Pvt Ltd, recorded revenue in the range of Rs 195 crore and Rs 220 crore for three years through FY24, according to VCCEdge. In FY25, however, its revenue is likely to have crossed Rs 250 crore, VCCircle has gathered.
Indium Capital acted as the investment banking advisor to KEF Holdings. ALMT Legal advised KEF Holdings on legal matters.
Published by HT Digital Content Services with permission from VC Circle.