KKR acquires 49% stake in Radiant Life Care for $200 million
The acquisition follows KKR’s infusion of debt funding worth Rs500 crore in Radiant Life Care last year
Global alternative investment management firm KKR & Co. Lp has acquired a 49% stake in hospital chain Radiant Life Care Pvt. Ltd for $200 million, KKR said in a statement on Monday.
Radiant’s facilities include BLK Super Speciality Hospital (BLK) in New Delhi and the Nanavati Super Speciality Hospital in Mumbai, both of which have been rebuilt and re-launched since being acquired by the company.
KKR’s investment in Radiant continues the firms’ partnership, as KKR has previously extended funding to Radiant to support its growth.
KKR will make the proposed investment from its KKR Asian Fund III.
Sanjay Nayar and Nikhil Srivastava, directors with KKR India, will join the board of Radiant Life Care.
Last year, KKR had infused debt funding worth Rs500 crore in Radiant Life Care.
“This is an exciting time for health care in India given the growing demand for superior medical treatment. In this industry, scale and operating leverage are increasingly important, and Radiant has a unique opportunity to acquire assets during a time of industry consolidation. KKR is focused on providing long-term capital solutions to experienced health care partners like the Radiant team to continue their work to deliver high-quality care and services,” said Nayar, chief executive officer of KKR India.
“KKR has more than two decades of experience investing in and working alongside health care companies, and with their expertise, we look forward to expanding our business,” said Abhay Soi, chairman and managing director of Radiant.
BLK is now being expanded into a 1,600-bed quaternary care hospital.
Besides BLK, Radiant collaborated with the Nanavati Hospital Trust in 2014 to take over the operations of Nanavati hospital, a 350-bed multi-speciality facility. Over the next four years, Radiant plans to build Nanavati into a 1,000 bed state-of-the-art quaternary care institute, the statement said.
KKR has been investing in India since 2006 and opened its Mumbai office in 2009.
The private equity firm has invested about $3.2 billion in Indian firms through its private equity business, and has provided more than $3.5 billion of financing to firms through its corporate- and real estate-focused non-banking financial companies (NBFCs) as of 31 March.
KKR’s existing private equity investments in India include Aricent, Avendus Capital Pvt. Ltd, Bharti Infratel Ltd, Coffee Day Enterprises Ltd, Emerald Media Ltd, Magma Fincorp Ltd, Max Financial Services Ltd and SBI Life Insurance Co. Ltd.
Over the last 12 months, KKR also announced exits from portfolio firms including Alliance Tire Group, Dalmia Bharat Group, Gland Pharma Ltd and TVS Logistics Services Ltd.
Last month, KKR raised $9.3 billion for its investments in private equity transactions across the Asia Pacific region under the KKR Asian Fund III. The fund surpassed KKR’s $6 billion Asian Fund II to become one of the largest private equity funds dedicated to investing in the region, according to financial data research firm Preqin.
With the closing of this fund, KKR’s private equity business has over $68 billion in assets under management worldwide (using valuations for existing funds as of 31 March).
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