Blackstone enters Indian healthcare with Hyderabad buy – Times of India

HYDERABAD: Global private equity giant Blackstone on Monday made 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 buy Kerala-based KIMShealth from PE player True North.
The 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, and catering to over 30 clinical specialties.

While none of the players disclosed the deal sizes, market reports estimated Blackstone’s buyout of CARE to be over $700 million and that of KIMShealth in the region of Rs 3,000-3,500 crore ($360-420 million).
After 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 chain will continue to operate under its founder chairman & managing director Dr M I Sahadulla.
Blackstone Private Equity managing director Ganesh Mani said Blackstone aims to build a patient-centric hospital platform that will be focused on quality clinical care and services.