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KKR acquires 70% stake in Baby Memorial Hospital for expansion


Global investment firm KKR is acquiring a controlling stake in Baby Memorial Hospital (BMH), a Kerala-based multispecialty hospital chain. The deal, reportedly worth 2,500 crore for a 70% stake, aims to support BMH's expansion across India. Founded in 1987, BMH currently operates 1,000 beds in Calicut and Kannur, offering services across 40 medical specialties. KKR's investment, made through its Asian Fund IV, aligns with its healthcare sector focus in Asia Pacific. The partnership will leverage KKR's expertise to accelerate BMH's growth, improve healthcare accessibility, and potentially lead to both organic expansion and acquisitions. This move highlights the increasing interest of global investors in India's growing healthcare market.

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Global investment firm KKR has announced its acquisition of a controlling stake in Baby Memorial Hospital (BMH), a Kerala-based multispecialty hospital chain. While the exact deal value wasn't disclosed, industry sources suggest KKR will acquire a 70% stake for approximately 2,500 crore. This investment aims to support BMH's expansion efforts, addressing India's growing demand for quality healthcare. The plan includes both organic growth and potential acquisitions to create a pan-India hospital network. Founded in 1987 by KG Alexander, BMH currently operates 1,000 beds across facilities in Calicut and Kannur, with plans for regional expansion.

BMH offers comprehensive medical services across 40 specialties, including cardiology, oncology, neurology, gastroenterology, pediatric, and orthopedics. The investment comes from KKR's Asian Fund IV and aligns with the firm's track record in healthcare investments across Asia Pacific. KKR's healthcare portfolio in India includes previous investments in Max Healthcare (from which it profitably exited in 2022), Healthium, Infinx, JB Pharma, and Gland Pharma. The firm has also made notable healthcare investments in other Asian countries, such as Japan's PHC and Bushu Pharma, and Metro Pacific Hospitals in the Philippines.

Akshay Tanna, Partner and Head of India Private Equity at KKR, expressed enthusiasm about partnering with Dr. KG Alexander and his family. He emphasised KKR's commitment to leveraging its network and healthcare expertise to support BMH's growth and increase its impact on local communities. Dr. KG Alexander, founder and chairman of BMH, welcomed the opportunity to access global and local healthcare sector experience. He believes this partnership will accelerate the hospital's growth, expand its services across India, and maintain its commitment to delivering excellent patient care.

The deal highlights the growing interest of global investors in India's healthcare sector, driven by increasing demand for quality medical services and the potential for consolidation in the fragmented hospital market. KKR's investment in BMH is expected to bring not only capital but also strategic expertise to help the hospital chain navigate its expansion plans and improve operational efficiency. This transaction also underscores the trend of private equity firms taking significant stakes in Indian healthcare providers, aiming to professionalize management, improve standards, and create value through scale and efficiency.

As India's healthcare needs continue to grow, such investments are likely to play a crucial role in expanding access to quality medical care across the country. The partnership between KKR and BMH represents a significant development in India's healthcare landscape, potentially setting the stage for further consolidation and improvement in the sector. It also demonstrates the confidence of global investors in the long-term growth prospects of India's healthcare market.

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