Blackstone Group has acquired controlling stake in Care Hospitals and Kims Health in a multi-layered deal valued at USD 1 billion. This would be private equity giant’s maiden foray into India’s healthcare sector.
According to media reports, the New York-based firm secured nearly a 75 per cent stake in Care Hospitals from Evercare Health Fund, an arm of TPG, for around USD 700 million.
Care Hospitals will invest around USD 400 million to acquire an 80 per cent stake in Kims Health. Blackstone has invested USD 300 million and TPG has put in around USD 100 million. Kims Health’s founder, M. I. Sahadulla, will keep the remaining stake.
The combined entity will have 23 facilities in 11 cities, with over 4,000 beds. Blackstone’s total investment will be USD 1 billion. Both transactions have a cumulative enterprise valuation of approximately USD 1.33 billion. True North, which previously had a 61 per cent stake in Kims, will sell its entire position. The new platform will offer close to 30 clinical specialties including cardiac sciences, oncology and organ transplants. Barclays, Rothschild, ICICI Securities and o3 Capital provided advisory services for the deals. Legal guidance was given by Shardul Amarchand Mangaldas, Desai Dewanji and Trilegal.
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