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HYDERABAD: Global private equity giant Blackstone on Monday announced its debut in the Indian healthcare market with the acquisition of a majority stake in Hyderabad-based CARE Hospitals, which in turn has inked a definitive agreement to acquire a majority stake in Kerala-based KIMSHEALTH from PE player True North.
The mega deal, which is pegged at over $1 billion, will create one of India’s largest hospital chains with a combined network of 23 hospitals with 4,000 beds across 11 cities catering to over 30 clinical specialties.
While none of the players disclosed any deal sizes, market reports put the Blackstone buyout of CARE to be over $700 million and that of KIMSHEALTH in the region of around Rs 3,000-3,500 crore.
Post the acquisition, PE player TPG, which currently owns CARE Hospitals through the Evercare Health Fund, will be left with a significant minority stake in the combined platform.
On the other hand, while True North will sell its entire 61% stake in KIMSHEALTH, the Kerala-based chain will continue to operate under its founder chairman & managing director Dr M I Sahadulla.
Blackstone Private Equity managing director Ganesh Mani said lifesciences is a key investment theme for Blackstone, which will continue to grow the platform organically and through acquisitions.He said Blackstone will build a patient-centric hospital platform that will be focused on quality clinical care and service.
“We plan to bring in our global scale and operating expertise and invest in world-class physical and medical infrastructure, enhance the companies’ digital and technological capabilities, add higher end quaternary care specialties, and cultivate a clinician and employee culture focused organization,” Mani said.
TPG partner Ankur Thadani said TPG would partner Blackstone to build CARE Hospitals Group into a leading healthcare network across India and South Asia, while KIMSHEALTH founder CMD Dr M I Sahadulla said the partnership with globally renowned players like Blackstone and TPG would strengthen KIMSHEALTH’s capabilities and help its business enter the next phase of growth by becoming a part of a leading healthcare platform.
The mega deal, which is pegged at over $1 billion, will create one of India’s largest hospital chains with a combined network of 23 hospitals with 4,000 beds across 11 cities catering to over 30 clinical specialties.
While none of the players disclosed any deal sizes, market reports put the Blackstone buyout of CARE to be over $700 million and that of KIMSHEALTH in the region of around Rs 3,000-3,500 crore.
Post the acquisition, PE player TPG, which currently owns CARE Hospitals through the Evercare Health Fund, will be left with a significant minority stake in the combined platform.
On the other hand, while True North will sell its entire 61% stake in KIMSHEALTH, the Kerala-based chain will continue to operate under its founder chairman & managing director Dr M I Sahadulla.
Blackstone Private Equity managing director Ganesh Mani said lifesciences is a key investment theme for Blackstone, which will continue to grow the platform organically and through acquisitions.He said Blackstone will build a patient-centric hospital platform that will be focused on quality clinical care and service.
“We plan to bring in our global scale and operating expertise and invest in world-class physical and medical infrastructure, enhance the companies’ digital and technological capabilities, add higher end quaternary care specialties, and cultivate a clinician and employee culture focused organization,” Mani said.
TPG partner Ankur Thadani said TPG would partner Blackstone to build CARE Hospitals Group into a leading healthcare network across India and South Asia, while KIMSHEALTH founder CMD Dr M I Sahadulla said the partnership with globally renowned players like Blackstone and TPG would strengthen KIMSHEALTH’s capabilities and help its business enter the next phase of growth by becoming a part of a leading healthcare platform.
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