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KKR-backed Radiant Life Care to acquire Max Healthcare

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Healthcare company Max India Ltd said on Monday it will sell a stake in its healthcare services joint venture Max Healthcare Institute Ltd to Radiant Life Care Pvt Ltd and global investment firm KKR.

Bengaluru, 24 Dec, 2018. RedNewswire/-

Radiant Life Care is in the final stages of negotiations to acquire 49 percent stake in Max India’s hospital chain Max Healthcare.

The acquisition will be followed by a de-merger of Max Healthcare which will result in KKR and Radiant promoter Abhay Soi together acquiring a majority stake in Max Healthcare. 

In the final entity, KKR will have majority stake with 51.9% stake and Abhay Soi will have 23% stake. Analjit Singh, the founding promoter of Max India will be classified as non-promoters in the merge entity and finally settle with 7% stake after selling 4.99% stake to KKR in the merged entity as per the company announcement.

The merged entity will operate over 3,200 beds through 16 hospitals across India and will be among the top three by revenue and the fourth-largest by beds, according to a company statement. The combined entity will be valued at Rs 7,242 crore.

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Radiant Life care CMD Abhay Soi said, “The proposed acquisition of a majority stake in Max Healthcare marks an exciting step forward in our strategy to increase scale by merging with a leading and complementary hospital network. We are fortunate to have strong support from KKR as we continue our mission of providing superior medical services in India.” 

Analjit Singh, Founder & Chairman Emeritus of Max Group, said, “Max Healthcare has been an integral part of my entrepreneurial journey and I can’t think of better partners than Radiant, backed by KKR, to carry forward this legacy. The merger offers significant growth potential with revenue and cost efficiencies to be extracted.” 

Sanjay Nayar, Member & CEO of KKR India, said, “We are excited to back Radiant’s efforts towards consolidation in the healthcare sector by helping them create an effective platform in India for the highest-quality healthcare service providers, best in class infrastructure, practices, doctors and management teams. The combined business will enjoy a leadership position amongst the attractive metros of Delhi and Mumbai.” 


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