HYDERABAD: KKR-backed Baby Memorial Hospital has agreed to acquire a controlling stake in Hyderabad-based Star Hospitals for ₹1,800 crore, according to people aware of the development.
The transaction values Star Hospitals at around ₹3,000 crore. Baby Memorial Hospital will acquire nearly 60% stake in the hospital chain's parent entity, Unimed Healthcare, the sources said.
Star Hospitals was founded by cardiologist Gopichand Mannam, a Padma Shri awardee.
KKR is expected to infuse funds into the Kozhikode-headquartered Baby Memorial Hospital to finance the acquisition. The Competition Commission of India (CCI) cleared the deal last month.
"Acquisition documentation has been completed; some formalities remain," one of the persons said, declining to be identified.
The development follows earlier reports that
KKR and Star Hospitals did not respond to queries.
Second acquisition strengthens expansion strategy
The acquisition marks Baby Memorial Hospital's second deal in under a year. It had earlier acquired Kerala-based Meitra Hospitals for ₹1,200 crore.
The hospital chain is also expanding organically, with a greenfield facility under construction in Chennai and two additional hospitals planned in Kerala.
Alvarez and Marsal acted as financial advisers to Star Hospitals.
KKR builds consolidation platform in healthcare
KKR acquired a controlling stake in Baby Memorial Hospital in July 2024 for about ₹2,500 crore. The founding family, led by KG Alexander, retains a 25-30% stake and continues to manage operations.
Since then, KKR has used the platform to pursue acquisitions in southern India. The strategy is aimed at consolidating hospital assets to build scale for a potential merger or public listing.
A similar approach was followed in its earlier investment in Max Healthcare, where it facilitated a merger with Radiant Life Care to create a national hospital chain before exiting.
Star Hospitals' presence and competition
Star Hospitals operates a flagship facility in Banjara Hills, Hyderabad, and another in Nanakramguda, the city's financial district.
It competes with nearby healthcare providers such as AIG Hospitals and Continental Hospitals. Other hospital chains, including Apollo Hospitals and Manipal Hospitals, had also shown interest in acquiring Star Hospitals earlier.