New York-based Blackstone to acquire stake in CARE Hospitals, KIMS Healthcare

In a move to make an entry into India's healthcare services sector, Blackstone has officially announced an agreement to acquire a majority stake in Hyderabad-based CARE Hospitals from Evercare, a TPG RISE funds platform, for approximately $700 million (around Rs 5,827 crore).

Private equity funds managed by Blackstone have secured a 72.5% stake in CARE Hospitals at an enterprise value of Rs 6,600 crore.

Additionally, in a separate transaction, CARE Hospitals and TPG will jointly acquire an 80% stake in Kerala-based KIMSHEALTH, involving an investment of approximately $400 million. Blackstone will contribute $300 million, and TPG will provide the remaining $100 million as part of the arrangement.

Also read/watch - Bank holidays in November 2023: Banks to remain closed for 15 days in November

Overall, Blackstone's investment commitment in the entire deal totals $1 billion. The incorporation of KIMSHEALTH into the CARE Hospitals network will create one of India's largest hospital platforms, spanning 23 facilities in 11 Indian cities, with a combined capacity of more than 4,000 beds.

TPG, holding its CARE Hospitals stake through the Evercare Health Fund, will maintain a substantial minority interest in the merged platform.