INDIA – Blackstone has signed a definitive agreement to acquire a majority stake in India’s Care Hospitals for an undisclosed amount.
Private equity funds managed by Blackstone now own 75% of the stake in Care Hospitals previously held by Evercare, a platform of TPG RISE funds.
In a similar deal, Care Hospitals has signed a definitive agreement to acquire a majority stake in KIMSHEALTH, which operates under Kims Healthcare Management.
In the latest update from TPG, Ankur Thadani, Partner at TPG, said: “We are excited about partnering with Blackstone to continue our efforts and journey in building CARE Hospitals Group into a leading, patient-centric healthcare delivery network across India and South Asia, focused on delivering clinical excellence.”
Ganesh Mani underscored that life sciences is a key investment theme for Blackstone, adding that Blackstone plans to bring its global scale and operating expertise into the subsector.
Notably, Blackstone bought a majority stake of 75% in India’s Care Hospitals from a fund belonging to asset management firm TPG.
“We believe there is significant potential in creating a market-leading platform through both organic and partnership-driven consolidation efforts, which is evidenced in our proposed association with KIMSHEALTH,” commented Ankur Thadani.
TPG, which has a stake in Care Hospitals through its Evercare Health Fund, retains a significant minority stake in the combined platform, according to the news statement from Reuters.
With the closing of this acquisition deal, Blackstone has made its India debut in the country’s healthcare services sector, which is expected to grow to US$50 billion in size by 2025.
In his official address, 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.”
Regarding investment opportunities in India’s healthcare services sector, it is worth mentioning that Care Hospitals is gearing up to complete the acquisition of a majority stake in KIMSHEALTH in the coming weeks.
Care Hospitals and KIMSHEALTH are trusted brands in the Indian healthcare space with a reputation for prioritizing patients and a track record of excellence in medical ethics and clinical outcomes.
Following the acquisition of KIMSHEALTH, Care Hospitals will become the operator of one of India’s largest hospital platforms with 23 facilities and more than 4,000 beds across 11 Indian cities.
The Care Hospitals network already has a presence in Aurangabad, Bhubaneswar, Hyderabad, Indore, Nagpur, Raipur, and Visakhapatnam.
The addition of KIMSHEALTH to the Care Hospitals network is poised to create the latter’s leadership position in under-penetrated, emerging Indian cities that have strong potential for growth.
Commenting on this investment, Ganesh Mani divulged: “We aim to build a patient-centric hospital platform focused on high clinical care quality and top-notch service.”
Mani reiterated Blackstone’s commitment to emerging as a long-term investor and business builder in India’s life sciences sector, noting that they seek to grow the platform organically and through acquisitions.
“We plan to 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,” highlighted Mani.
It is worth mentioning that the landmark deal comes as a post-pandemic boom in demand for private healthcare in India has made the sector attractive, with global investors seeking entry into healthcare chains in the country.
In a similar deal, Hong Kong-based investment firm BPEA EQT, Baring Private Equity Asia, has struck a definitive agreement to acquire a 60% stake in Indian fertility services provider Indira IVF for 54 billion Indian rupees (approximately US$648.63 million).
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