Private equity firm Blackstone has acquired KIMS Health Management, one of India’s leading hospital chains, for $400 million.
The acquisition was made through Quality Care India Limited (QCIL), a hospital platform owned by Blackstone. With the purchase, QCIL will become the fourth-largest hospital group in India, boasting nearly 3,800 beds.
KIMS Health Management, based in Kerala, has been a major player in the Indian healthcare market with a network of hospitals and clinics across the country.
Blackstone’s acquisition of KIMS is a significant milestone for QCIL and the broader healthcare market in India. The move highlights Blackstone’s commitment to the Indian healthcare sector and its expanding presence in South Asia.
As the deal is finalized, the integration of KIMS into the QCIL network marks a new chapter in the healthcare landscape. The increased bed capacity and the solid financial outlook indicate a positive future for the hospital group.
Details of the Acquisition
Stake and Valuation
Blackstone-owned hospital platform Quality Care India Limited (QCIL) has acquired KIMS Health Management (KHML), Kerala’s leading hospital chain, for ₹3,300 crore ($400 million). With this acquisition, QCIL has become the fourth largest hospital group in India, owning close to 3,800 beds. The deal has been completed with Blackstone acquiring about 80 to 85 percent stakes in KHML.
Contenders and Outcome
Blackstone emerged as the frontrunner in the race to acquire KIMS Healthcare Management (KHML), beating Manipal Health Enterprises Pvt Ltd. Blackstone’s acquisition of KIMS Health Management is a significant milestone for QCIL and the broader healthcare market. It positions QCIL as a formidable player with an extensive footprint.
The deal was backed by Blackstone’s private equity and buyout funds. Blackstone owns a 73% stake in QCIL, while TPG Growth holds a 25% stake. CVC Capital also has a minority stake in the company.
The acquisition of KHML has strengthened QCIL’s position in the Indian healthcare sector. The company’s portfolio now includes CARE Hospitals and KIMS Hospitals, making it one of the largest hospital chains in the country.
Overall, Blackstone’s acquisition of KHML has been a strategic move that will help the company expand its presence in the Indian healthcare market. The deal has also highlighted the growing interest of private equity firms in the Indian healthcare sector.
About KIMS Health Management
Founder and Promoter
KIMS Health Management (KHML) is a leading hospital chain in Kerala, India. It was founded by Dr. MI Sahadulla, who is also the promoter of the company. Dr. Sahadulla is a well-known name in the healthcare industry and has been actively involved in the sector for over three decades. He is a recipient of several awards and recognitions for his contributions to the field of medicine.
Specialties and Infrastructure
KIMS Hospital is known for its world-class infrastructure and state-of-the-art facilities. The hospital chain offers a wide range of specialties including cardiology, neurology, oncology, orthopaedics, and gastroenterology, among others. The hospitals are equipped with the latest medical equipment and technology to provide the best possible care to patients. KIMS Hospital has a bed capacity of close to 3,800 beds, making it one of the largest hospital chains in Kerala.
Revenue and Profit
KIMS Healthcare Management has been a profitable entity, with a strong financial performance over the years. The company has reported steady revenue growth and has been able to maintain a healthy EBITDA margin. In the financial year 2022, the company reported an operating income of INR 1,500 crore and an operating profit of INR 250 crore.
Overall, KIMS Health Management has established itself as a leading player in the healthcare industry in Kerala, with a strong focus on providing quality healthcare services to patients. The acquisition by Blackstone-owned Quality Care India Limited (QCIL) is expected to further strengthen the hospital chain’s position in the market and help it expand its reach across the country.
Implications for the Healthcare Sector
The acquisition of KIMS Health Management by Quality Care India Limited (QCIL), owned by Blackstone, for ₹3,500 crore ($400 million) has significant implications for the healthcare sector in India. The move positions QCIL as the fourth largest hospital group in India with close to 3,800 beds and highlights Blackstone’s commitment to the Indian healthcare sector and its expanding presence in South Asia.
Growth and Investment
The acquisition is expected to drive growth and investment in the healthcare sector in India. With QCIL’s extensive footprint, the acquisition of KIMS Health Management is a significant milestone for the broader healthcare market. The deal is expected to open up opportunities for further investment and consolidation in the sector, as well as drive innovation and improve access to quality healthcare services.
Market Updates
Blackstone’s acquisition of KIMS Health Management has also been making headlines in the business news, with daily market updates on the deal’s progress and the implications for the healthcare sector. The Economic Times reported that Blackstone had emerged as the frontrunner to acquire KIMS Healthcare Management, valuing it at INR 40,000 million. The acquisition is seen as a strategic move by Blackstone to expand its presence in the Indian healthcare sector and tap into the growing demand for quality healthcare services in the country.
OrbiMed Advisors and Ascent Capital are among the investors who have been bullish on the healthcare sector in India, with OrbiMed Advisors raising $551 million for its third Asia-focused private equity fund, which will focus on investments in the healthcare sector. Ascent Capital has also been investing in the healthcare sector in India, with a focus on medical devices and healthcare services.
In conclusion, Blackstone’s acquisition of KIMS Health Management is expected to have significant implications for the healthcare sector in India, driving growth and investment and opening up opportunities for further consolidation and innovation. The deal has also been making headlines in the business news, with daily market updates on the progress of the acquisition and the implications for the broader healthcare market.
International Presence and Future Prospects
Presence in Oman
Blackstone’s acquisition of KIMS Health Management (KHML) has not only strengthened its position in India’s healthcare sector but also expanded its international presence. KIMS has a hospital in Oman, and with Blackstone’s backing, it is expected to expand its operations in the country. This move is in line with Blackstone’s strategy of investing in emerging markets and expanding its global footprint.
World Health Organisation’s Role
The World Health Organisation (WHO) has been playing an instrumental role in promoting quality healthcare in India, especially in the state of Kerala. Kerala is known for its high-quality healthcare services, and KIMS Health Management (KHML) has been at the forefront of this effort. With Blackstone’s acquisition of KHML, it is expected that the hospital chain will continue to maintain its high standards of healthcare delivery and contribute to the WHO’s efforts to improve healthcare services in the state.
Looking ahead, Blackstone’s acquisition of KHML is expected to have a positive impact on the healthcare sector in India. The acquisition has created a hospital platform with close to 3,800 beds, making it the fourth-largest hospital group in India. The increased bed capacity and solid financial outlook indicate a promising future for the hospital group under Blackstone’s ownership, solidifying its role as a major player in the healthcare sector.
In conclusion, Blackstone’s acquisition of KIMS Health Management (KHML) has not only strengthened its position in India’s healthcare sector but also expanded its international presence. With its focus on emerging markets and expanding its global footprint, Blackstone is well-positioned to drive growth and innovation in the healthcare sector.
