Blackstone Enters the Indian Healthcare Space with 2 Acquisitions Worth 1.5 Bn

Reportedly, the deal is valued at around $1.3-1.5 billion, of which Blackstone’s commitment is around $1 billion to build one of the largest hospital platforms in the country.

New York-Based Blackstone, through its private equity funds, has set foot into the Indian healthcare space with its two acquisitions. First, it has acquired a majority shareholding in CARE Hospitals from Evercare, a platform of TPG RISE funds.

Further, CARE Hospitals in turn has signed an agreement to acquire a majority stake in KIMSHEALTH. True North will sell its entire stake in KIMSHEALTH India as part of the transaction.

Reportedly, the deal is valued at around $1.3-1.5 billion, of which Blackstone’s commitment is around $1 billion to build one of the largest hospital platforms in the country.

Moreover, after the completion of the transactions, Blackstone will hold around 75% stake in CARE Hospitals and TPG will have a significant minority stake.

The addition of KIMSHEALTH to the CARE Hospitals network creates one of India's largest hospital platforms with 23 facilities across 11 cities in India, creating a leadership position in under-penetrated, emerging cities that have strong potential for growth.

The combined platform will have more than 4,000 beds which shall deliver advanced comprehensive care in more than 30 clinical specialities, including cardiac sciences, oncology, neurosciences, renal sciences, orthopaedics, gastroenterology, and integrated organ transplant.

This is Blackstone’s first investment in India’s healthcare services sector. Additionally, this investment aligns with Blackstone’s strategy of diversifying its portfolio across different sectors and geographies.

Commenting on the transaction, Ganesh Mani, MD, 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. CARE Hospitals and KIMSHEALTH are trusted brands in the Indian healthcare space with a reputation of prioritising patients and having 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."

Founded in 1987 by Stephen Allen Schwarzman and Peter Peterson, Blackstone Group is a US-based private equity fund known for its investments in various sectors. Over the years, Blackstone has grown significantly, with its investment activities expanding across different sectors.

Last month, the Competition Commission of India (CCI) approved the stake acquisition by Blackstone and TPG in Quality Care India Ltd (QCIL). This move sought to bolster further the growth and quality of healthcare services provided by QCIL, benefiting patients and stakeholders alike.