Blackstone acquires Care Hospitals, Kims Health in $1 billion twin deal

livemint.com:

Mumbai: Blackstone Group Inc. has acquired controlling interests in Care Hospitals and Kims Health in a multi-layered deal valued at $1 billion, marking the private equity giant's maiden foray into India's healthcare sector. The New York-based firm secured roughly a 75% stake in Care Hospitals from Evercare Health Fund, an arm of TPG, for around $700 million, said a persom familiar with the transaction, requesting anonymity.

TPG Rise retains the remaining stake. Care Hospitals, in turn, has entered an agreement to invest around $400 million to acquire 80% stake True North-backed Kims Health, the person cited above said. Of this, Blackstone has invested $300 million, while TPG has put in around $100 million.

Kims Health's founder M. I. Sahadulla will retain the residual stake.

The combined entity of Care and Kims Health will span 23 facilities across 11 cities, boasting over 4,000 beds Blackstone’s overall investment will be $1 billion. The cumulative enterprise valuation of both transactions is roughly $1.33 billion. “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," Ganesh mani, managing director at Blackstone Private Equity said.

“We are committed to being a long-term investor and business builder. We seek to grow the platform organically and through acquisitions. Life sciences is a key investment theme for Blackstone and we plan to bring in our global scale and operating expertise.