MUMBAI: The US-based private equity major KKR, which made a killing last month by exiting Max Healthcare for around Rs 9,200 crore, has closed its third deal in Kerala, snapping up a majority stake in the Kozhikode-based 230-bed Meitra Hospital for a reported Rs 1,100 crore.
KKR has completed the Meitra deal through Baby Memorial Hospital, another Kozhikode-based hospital with 500 beds that it owns since July 2024 when it had picked up 70% for around Rs 2,500 crore. Its first acquisition was of the 350-bed Chazhikattu Multi-Speciality Hospital in Thodupuzha, a central Kerala town, for an undisclosed amount.
Three buys in two years underscores KKR's strategy of consolidating quality hospital assets in the region, which has comparatively better healthcare facilities.
The deal for Baby Memorial Hospital in turn was completed through another of its companies Quality Care, which is Bengaluru-based, an investment banker who advised the deal told TNIE Wednesday.
Meitra Hospital was founded by Dr Faizal Kottikollon in 2012. He is also the founder chairman of KEF Holdings, which is based in the Middle East.
Both KKR and Meitra Hospital did not respond to calls seeking confirmation.
It may be noted that KKR last month had successfully exited its largest buy in the country’s healthcare space when it had bought 27.5% stake in Max Healthcare in 2018, and has made five times more at Rs 9,185 crore through open market transactions. The stake was sold via block deals to investors including the government of Singapore, Monetary Authority of Singapore, Capital Group, WF Asian Smaller Companies Fund, Smaller Cap World Fund Inc, and BNP Paribas Arbitrage Fund, marking KKR's largest exit from an domestic firm. While it had paid Rs 88 a share in 2018, it sold the same at Rs 353 a share, according to block deal data from exchanges.
Baby Memorial Hospital is also in early discussions to buy Star Care Hospital, another Kozhikode-based chain, the investment banker said.
Meitra Hospital is a quaternary-care facility, offering advanced services in heart & vascular care, bone, joint & spine care, neurosciences, gastro sciences, nephro-urosciences, blood disorders, bone marrow transplant and cancer immunotherapy. It is part of KEF Holdings, a Middle East-based investment group with interests in healthcare, infrastructure and education.
Earlier, KKR was planning to acquire Daya Hospital, a 500-bed chain in Thrissur, but those talks did not move forward after Daya raised Rs 150 crore from Ascent Capital for 28% stake.
The noted cardiologist and healthcare entrepreneur Dr KG Alexander founded Baby Memorial in 1987 with a modest 52-bed facility in Kozhikode. It has since grown into a leading healthcare institution with nearly 1,000 beds across three hospitals and an expanded presence in Kannur.
Kerala’s high literacy rates, advanced health indicators which match with the Western world, potential in medical tourism and established private hospital ecosystem make it a good investment for institutional capital. The state consistently led the nation in healthcare, holding the top ranking in Niti Aayog’s health index for four consecutive years during 2017-20. The state also outperforms national averages in healthcare infrastructure, with 1.14 beds per 1,000 people. The human resources ratio of 2.18 doctors, nurses, and midwives per 1,000 population is far better than the national average of 1.07.
In 2023, Blackstone-owned Quality Care India, alongside TPG Growth, had acquired a majority stake in Thiruvananthapuram-based KIMS Health Management for about Rs 3,500 crore. In 2015, KIMS itself had bought a 51% stake in Al Shifa Hospital in Malappuram district.