Key Takeaways:
KKR & Co. is in advanced talks to acquire a majority stake in the Indian hospital business of Sweden's Medicover AB for at least $1 billion, a deal that would deepen the buyout firm's bet on one of the world's fastest-growing healthcare markets.
"Discussions are ongoing and a non-binding agreement has been reached," said a person with direct knowledge of the matter, who declined to be named as the talks are private.
KKR is seeking to acquire Medicover AB's entire 66.9 percent stake in Medicover Hospitals India for at least $1.05 billion and is also in discussions with minority shareholders, the person said. The Indian unit operates 26 hospitals with about 6,000 beds and reported annual revenue of $234.6 million in 2025, up nearly 1 percent from a year earlier. The business accounts for more than half of the group's hospitals globally.
The deal underscores surging private equity appetite for Indian healthcare infrastructure, where rising incomes, expanding insurance coverage and growing demand for quality care are driving consolidation. India's hospital sector has attracted strong investor interest, with listed chains such as Apollo Hospitals, Aster Hospitals and Fortis Healthcare competing for market share in a fragmented industry.
Stockholm-listed Medicover confirmed the discussions in a press release Wednesday after Reuters sent a request for comment, saying it was in talks with KKR "regarding a potential sale of its Indian operations." The company cautioned there is no certainty the discussions will result in a transaction and said it is continuing with preparations for an initial public offering of the Indian unit.
A Growing Healthcare Bet
KKR has been steadily expanding its healthcare footprint in India. In 2024, the buyout firm acquired a controlling stake in a hospital chain in the southern state of Kerala and has since backed the group's expansion through acquisitions. The Medicover deal would represent its largest single healthcare investment in the country.
Medicover entered India in 2016 and has built one of the country's larger hospital networks, competing directly with Apollo Hospitals, which operates more than 70 hospitals, and Fortis Healthcare, which runs about 30 facilities. The Indian business is central to Medicover's global hospital operations, representing more than half of the group's total hospital count.
Rothschild is advising on the sale process, while Kotak is advising KKR, the person said. Neither bank responded to requests for comment.
What's at Stake
A successful deal would give KKR a significant platform in India's hospital sector at a time when healthcare spending is accelerating. India's hospital market was valued at about $62 billion in 2024 and is projected to grow at an annual rate of 10 to 12 percent over the next five years, driven by medical tourism, lifestyle diseases and government health insurance schemes, according to industry estimates.
For Medicover AB, the sale would reduce its exposure to a capital-intensive market where it competes with better-capitalized local players. The Swedish company's shares could see a boost as investors price in the reduced risk and potential cash return. For KKR, the deal signals confidence in India's healthcare infrastructure story, where private equity has deployed more than $5 billion over the past three years across hospitals, diagnostics chains and health insurance platforms.
The deal is expected to face standard regulatory approvals from India's Competition Commission and the Foreign Investment Promotion Board. No timeline for a formal agreement has been disclosed.
This article is for informational purposes only and does not constitute investment advice.
