Blackstone has secured a majority stake in CARE Hospitals from Evercare, a division of TPG RISE funds. Simultaneously, CARE Hospitals has finalized an agreement to acquire a dominant share in KIMSHEALTH.
This collaboration will result in one of India’s largest hospital networks, encompassing 23 facilities across 11 cities, particularly focusing on burgeoning locations with promising growth potential, and boasting a combined capacity of over 4,000 beds.
Moneycontrol first reported the sale plans of Evercore-backed CARE Hospitals on January 30, 2022. Moneycontrol was also the first to report the sale plans of TrueNorth backed KIMSHEALTH on September 03, 2022.
TPG, via its Evercare Health Fund, will maintain a substantial minority interest in the joint platform. Dr M I Sahadulla will continue to lead KIMSHEALTH in the next phase of the platform's growth.
Ganesh Mani, Managing Director of Blackstone Private Equity, expressed delight in Blackstone’s inaugural investment in India’s healthcare sector, aiming to establish one of the country’s largest healthcare platforms in collaboration with TPG. Their strategy is to build a patient-centric hospital network emphasizing superior clinical care quality and service excellence.
Blackstone's global experience will contribute to enhancing physical and medical infrastructure, technological advancements, specialized care services, and fostering a culture prioritizing healthcare practitioners and staff.
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Ankur Thadani, Partner at TPG, shared enthusiasm in the collaboration with Blackstone, focusing on fostering CARE Hospitals Group as a premier healthcare delivery network across India and South Asia. "We believe there is significant potential in creating a market-leading platform through both organic and partnership-driven consolidation efforts, which is evidenced in our proposed association with KIMSHEALTH,” he said.
Dr MI Sahadulla, Founder, Chairman & Managing Director of KIMSHEALTH, expressed optimism regarding the partnership with Blackstone and TPG, foreseeing strengthened capabilities and growth opportunities for KIMSHEALTH. This move is a significant step towards their evolution as part of a leading healthcare platform.
True North will divest its entire stake in KIMSHEALTH India as part of this transaction. Satish Chander, Partner of True North, acknowledged their successful partnership with KIMSHEALTH, known for its dedication to clinical excellence and service.
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The unified platform will offer comprehensive care across over 30 clinical specialties, including cardiac sciences, oncology, neurosciences, renal sciences, orthopedics, gastroenterology, and integrated organ transplant services.
Barclays and Rothschild served as financial advisors for TPG on the CARE Hospitals deal, while ICICI Securities advised KIMSHEALTH and its shareholders.
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