Blackstone Group Enters Indian Health Sector After Acquiring Care Hospitals, Kims Health For $1 Billion
Private equity fund manager Blackstone has acquired a majority shareholding in CARE Hospitals from Evercare, a platform of TPG RISE funds.
Furthermore, CARE Hospitals has signed a definitive agreement to acquire a majority stake in KIMSHEALTH, according to a report by ET.
According to media reports, Blackstone-owned hospital platform Quality Care (QCIL) has agreed to acquire KIMS Health Management (KHML) for $400 million or Rs 3,300 crores. QCIL is jointly owned by Blackstone and TPG Growth. In May 2023, Blackstone reportedly acquired 72.5 per cent in Care Hospitals at an enterprise value of Rs 6,600 crore.
Blackstone will commit $1 billion in the hospital chain in India.
The companies announced this in a joint statement, without disclosing the transaction amount. The addition of KIMSHEALTH to the CARE Hospitals network is expected to create one of India's largest hospital platforms with 23 facilities across 11 cities in India.
Ganesh Mani, Managing Director at Blackstone Private Equity, said: "We are pleased to make Blackstone's first investment in India's healthcare services sector and partner with TPG to create one of the largest healthcare platforms in India.
After the transaction, True North will no longer have any stake in KIMSHEALTH.
The deal is being made as a post-pandemic boom in demand for private healthcare in India has made the sector attractive to global investors, who are seeking an entry into healthcare chains in the country.
CARE Hospitals and KIMSHEALTH are trusted brands in the Indian healthcare space with a reputation for prioritizing patients and have a track record of excellence in medical ethics and clinical outcomes. We aim to build a patient-centric hospital platform focused on high clinical care quality and top-notch service".