India-based hospital management company Radiant Life Care has closed the acquisition of a 49.7% stake in Max Healthcare Institute from South Africa-based hospital operator Life Healthcare.

Radiant Life Care, which is backed by global investment firm KKR , will see its promoter Abhay Soi lead the Max Healthcare as chairman of its board and executive council.

Radiant Life Care and Max Healthcare chairman Abhay Soi said: “We believe we have all the wherewithal to grow our business organically and inorganically during this challenging phase for the healthcare sector.”

KKR India member and chief executive officer Sanjay Nayar said: “We are excited about building Max Healthcare into an outstanding company governed by world-class board members and standing for the highest standards of clinical outcomes.”

Max India’s promoters have secured an advance amount of Rs361m ($52.2m) from KKR for the 4.99% stake in the merged company as a part of the transaction.

Max Group founder and chairman Analjit Singh said: “The merger and the future planned expansion will provide the scale that MHC (Max Healthcare) needs for profitable growth at a time when healthcare margins are being tested.”

Promoters of Max India have used the proceeds for deleveraging purposes. Radiant funded this deal with an investment from KKR’s Asian Fund III.

The acquisition is one of the several steps that will eventually lead Soi and KKR together acquiring a controlling stake in Max Healthcare.

This acquisition will see creation of a large hospital network due to the combination of the healthcare assets of Max Healthcare, Max India and Radiant.

The merger process of Radiant Life Care and Max Healthcare and the subsequent listing of Max Healthcare is currently underway. This process is expected to be completed in six to eight months.