PE fund KKR closes third purchase in Kerala, at Meitra Hospital

International personal fairness agency KKR, which had notched a fivefold return in its exit from Max Healthcare, is doubling down on its hospital bets in South India. In its newest transfer, KKR-owned Kerala hospital chain Child Memorial Hospital (BMH) has acquired a major majority stake in Kozhikode-based Meitra Hospital, folks acquainted with the event mentioned.

The deal, KKR’s third within the state, values Meitra Hospital at round ₹1,000-1,200 crore, they mentioned.

BMH can also be in early discussions to purchase Star Care Hospital, one other Kozhikode-based chain, the folks mentioned. This builds on its acquisition final 12 months of the 350-bed Chazhikattu Multi Speciality Hospital at Thodupuzha, a city in central Kerala. The enlargement underscores KKR’s technique of consolidating high quality hospital property within the area.

Meitra Hospital, a 230-bed quaternary-care facility, is a part of KEF Holdings, a Center East-based funding group with pursuits in healthcare, infrastructure and training. KEF Holdings chairman Faizal Kottikollon mentioned this strategic partnership with KKR’s healthcare platform will allow the hospital to increase its capabilities.

KKR and BMH spokespersons declined to remark. An e-mail despatched to Star Care didn’t elicit any responses until press time Sunday.

Based by Kottikollon in 2012, Meitra Hospital gives superior companies in coronary heart & vascular care, bone, joint & backbone care, neurosciences, gastro sciences, nephro-urosciences, blood issues, bone marrow transplant and most cancers immunotherapy.

KKR had additionally explored buying Daya Hospital, a 500-bed chain in Thrissur, however these talks fell by after Daya just lately raised ₹150 crore from Ascent Capital by diluting a 28% stake.

KKR re-entered India’s hospital sector final 12 months, investing about $300 million (₹2,500 crore) to accumulate a 70% controlling stake in BMH. KG Alexander, a famous heart specialist and healthcare entrepreneur, based Child Memorial Hospital in 1987. It has since grown right into a healthcare establishment with practically 1,000 beds throughout three hospitals.

PE funding and buyouts in Kerala’s hospital sector have accelerated in recent times.

The state’s excessive literacy charges, superior well being indicators, potential in medical tourism and established personal hospital ecosystem make it a magnet for institutional capital.

In 2023, Blackstone-owned High quality Care India Ltd, alongside TPG Development, acquired a majority stake in Thiruvananthapuram’s KIMS Well being Administration at a valuation of about ₹3,500 crore.