STOCKHOLM: Medicover, the international healthcare and diagnostic services company, announced on Thursday it has agreed to divest its entire Indian hospital business to funds managed by global investment firm KKR in a transaction valued at €1.2 billion.
The deal, which is expected to close in the fourth quarter of 2026 subject to customary regulatory approvals, will see Medicover and its minority partners sell 100% of the equity in Medicover Hospitals India (MHI). Medicover, which owns a 66.1% stake in the Indian unit, will receive gross cash proceeds of approximately €0.74 billion from the sale, a statement said.
The decision comes after the company evaluated strategic alternatives for its Indian business, including a potential initial public offering, which was first announced in December 2024. Medicover stated that the transaction with KKR represents the “superior alternative” for the company, its stakeholders, and its partners.
“After careful consideration of alternatives for our India business, we have concluded that it is the right time to hand over the ownership to KKR,” said John Stubbington, CEO of Medicover, in a statement. “This is a highly value creating transaction that will enable accelerated delivery on our strategy with focus on Europe.”
Financial and Strategic Rationale
The divestiture marks a strategic pivot for Medicover, which entered the Indian market in 2017 and grew its operations to become one of the country’s top ten healthcare providers. As of the end of June 2026, MHI’s platform comprised 24 hospitals, approximately 4,800 beds, and employed about 11,400 people. The business generated annual revenue of €220.5 million for the last twelve months ending June 30, 2026.
Medicover stated that the substantial cash proceeds from the transaction will strengthen its financial position and provide the flexibility to accelerate its growth strategy in its core European markets of Poland, Germany, and Romania. The company intends to focus on network expansion, improving capacity utilization, capturing synergies, and accelerating technology initiatives in these regions.
On an illustrative proforma basis, removing the Indian business from its books would increase the Medicover Group’s EBITDA margin from 16.1% to 16.5% and its operating margin from 7.1% to 7.6%, based on LTM Q2 2026 figures. The company confirmed its existing financial targets remain in place following the completion of the transaction.
KKR’s acquisition expands its significant footprint in India’s rapidly consolidating healthcare sector. The U.S. private equity firm has been increasing its healthcare investments in the country, having previously acquired a controlling stake in a hospital chain in the southern state of Kerala in 2024.
Advisors and Outlook
Rothschild & Co is serving as financial advisor to Medicover, with McDermott Will & Schulte, Cyril Amarchand Mangaldas, and Advokatfirman Vinge acting as legal counsel.
The transaction is subject to merger control and other regulatory approvals. A webcast and telephone conference to discuss the transaction will be held later today at 09:00 CEST, featuring CEO John Stubbington and CFO Anand Patel.
