US-based private equity firm Blackstone has forayed into the Indian healthcare market by acquiring a majority stake in Hyderabad-based CARE Hospitals from TPG RISE Funds platform Evercare.
Blackstone is committing $1bn to the Indian hospital chain, taking over a 75% ownership.
Concurrently, CARE Hospitals is set to acquire Kerala-based KIMShealth from private equity firm True North, with True North selling its entire 61% stake in KIMShealth.
This move will result in one of India's largest hospital chains, encompassing 23 hospitals with 4,000 beds across 11 cities, offering advanced care in various medical specialities.
TPG, which has CARE Hospitals’ ownership via its Evercare Health Fund, will retain a minority stake in the combined platform.
While the financial terms were not disclosed, estimates suggest Blackstone's acquisition of CARE Hospitals is valued at over $700m, and the purchase of KIMShealth is around $360m-$420m.
Blackstone private equity managing director Ganesh Mani said: “Life sciences is a key investment theme for Blackstone and we plan to bring in our global scale and operating expertise.”
Blackstone aims to create a patient-centric hospital platform for quality clinical care and services.
It has $1tn in assets under management (AUM).
The company’s focus is on developing businesses that provide enduring value to both institutional and individual investors.
Its portfolio includes over 12,600 real estate assets and more than 230 portfolio companies.
