Blackstone acquires CARE hospitals in $1.5bn deal
Blackstone Group has revealed its plans to acquire a majority share in India's CARE Hospitals from a TPG-owned fund, marking the American private equity firm's entry into the Indian healthcare services industry. According to Reuters, Blackstone will invest Rs. 8,325.7 crore in the hospital chain, securing over 75% ownership in CARE Hospitals. This move comes as the demand for private healthcare in India has skyrocketed following the COVID-19 pandemic, drawing the attention of international investors.
'Life sciences is a key investment theme for Blackstone'
Ganesh Mani, Managing Director at Blackstone Private Equity, expressed that "life sciences is a key investment theme for Blackstone and we plan to bring in our global scale and operating expertise." This acquisition is in line with the rising interest of worldwide investors in Indian healthcare chains. Besides the CARE Hospitals transaction, Blackstone is also participating in a separate deal where CARE Hospitals will obtain a majority share in KIMSHEALTH, a subsidiary of Kims Healthcare Management.
Formation of one of India's largest hospital platforms
The purchase of KIMSHEALTH by CARE Hospitals will create one of the largest hospital platforms in India, encompassing 23 facilities and over 4,000 beds throughout 11 cities. The combined worth of both transactions is estimated to range between Rs. 10,825-12,490 crore, as per Reuters. However, the financial details of the agreement have not been disclosed. TPG, which owns a stake in CARE Hospitals through its Evercare Health Fund, will maintain a significant minority share in the merged platform.
Other recent investments in the Indian healthcare sector
This news follows other recent investments in India's healthcare sector. In July, Hong Kong-based BPEA EQT (Baring Private Equity Asia) declared its acquisition of a 60% stake in Indian fertility services provider Indira IVF for Rs. 5,400 crore. As the demand for private healthcare in India continues to rise, global investors are increasingly exploring opportunities to enter this flourishing market.
