Blackstone to enter into Indian healthcare sector with acquisition of Care Hospitals

A statement published on Monday, 30 October, 2023, by Blackstone indicated that they will buy a majority stake in India’s Care Hospital from a fund belonging to asset management firm TPG. This deal will mark the firm’s entry into India’s healthcare sector.

Blackstone is said to have invested $1 billion in the hospital chain in the country. This monetary commitment will allow Blackstone to hold over a 75% stake in Care Hospitals.

The post-pandemic boom is said to be a catalyst in this deal, as the demand for private healthcare in India has grown, making the sector attractive for foreign investors.

Ganesh Mani, the managing director at Blackstone Private Equity, expressed that life sciences constitute a significant investment focus for Blackstone, with intentions to leverage their worldwide reach and operational proficiency.

Care Hospital is in talks with KIMHEALTH for the acquisition of a majority stake in the firm managed by Kims Healthcare Management. This deal, if completed, will make Care Hospital India’s largest hospital platform, with 23 facilities and more than 4,000 beds across 11 cities.

The combined value of both deals falls within the range of $1.3 billion to $1.5 billion. However, the financial terms of the deal were not disclosed by the companies.

As per the statement, TPG, which holds a stake in Care Hospitals through its Evercare Health Fund, will maintain substantial minority ownership in the merged platform.

In July 2023, it was reported that Baring Private Equity Asia (BPEA EQT), an investment firm based in Hong Kong, is set to purchase a 60% share in the Indian fertility services provider, Indira IVF, for a total of 54 billion Indian rupees (approximately $648.63 million).