Medicover sells Indian hospitals for €1.2 billion, plans to invest more in Romania

Swedish group Medicover, active in the medical and diagnostic services market with international revenues of €2.4 billion, has decided to exit the Indian market, where it has operated for nearly a decade. The hospital division in that country has been sold to American investment fund KKR in a transaction valued at €1.2 billion.

Following this sale, Medicover will operate exclusively in the European market, where the company's most important countries are Poland, Germany, and Romania. The announcement was made by the group's CEO, John Stubbington, via a LinkedIn post.

The transaction comes nearly a month after Medicover's investor conference, where the Romanian market was one of the central topics of discussion, against the backdrop of contraction in the local healthcare market.

In his message, John Stubbington explained: "The transaction will generate gross cash proceeds of €740 million and will enable the company to accelerate its strategy in Poland, Germany, and Romania. The sale of the hospital operations in India slightly alters the group's revenue structure, without having a significant impact on current financial performance. The transaction allows Medicover to become nearly debt-free, substantially strengthening its financial position. This enables us to capitalise on attractive opportunities across Europe."

According to the company's CEO, this is the largest transaction in Medicover's history to date.