Permira to Acquire 25.71% Stake in Cloudnine Hospitals Parent at INR 11,000 Cr Valuation

The stake is being acquired from existing investor True North Capital, with Permira emerging ahead of rival TPG Capital for the transaction.

Global private equity firm Permira is set to acquire a 25.71% stake in Kids Clinic India Limited (KCIL), the parent company of Cloudnine Hospitals, in a transaction that values the maternity and paediatric hospital chain at approximately INR 11,000 crore, according to a filing with the Competition Commission of India (CCI).

The stake is being acquired from existing investor True North Capital, with Permira emerging ahead of rival TPG Capital for the transaction. The deal remains subject to regulatory approvals, including clearance from the CCI.

According to the proposed combination summary filed with the CCI, the acquisition will be undertaken through NuageLux BidCo, a newly incorporated private limited company under the laws of Luxembourg.

The filing also identified a potential indirect and limited vertical relationship involving a Permira-controlled entity engaged in the manufacture and sale of pharmaceutical products in India and KCIL and its relevant entities, which provide healthcare services in the country.

Permira and TPG Capital had emerged as frontrunners for a significant minority stake in Cloudnine, with the proposed transaction first reported by The Economic Times on August 1.

KCIL currently has one wholly owned subsidiary, Acquity Labs Private Limited. The company is also pursuing acquisitions in the hospital and fertility care segments.

KCIL is in the process of acquiring Apollo Specialty Hospitals Private Limited and Apollo Fertility Centre Private Limited from Apollo Health and Lifestyle Limited. The proposed acquisitions are currently pending approval from the CCI, according to the filing.

Cloudnine Hospitals operates in the maternity and paediatric healthcare segment, while the proposed transactions could further expand KCIL's presence across hospital and fertility care services.

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