Blackstone enters Indian healthcare services with Care Hospitals buy

BENGALURU, Oct 30 (Reuters) - Blackstone (BX.N) said on Monday it will buy a majority stake in Indias Care Hospitals from a fund belonging to asset management firm TPG, marking the U.S.-based private equity firms entry into the countrys healthcare services sector.

Blackstone will commit $1 billion in the hospital chain in India and hold over 75% in Care Hospitals, a source with direct knowledge of the matter said. They did not want to be named as the deal details are private.

The deal comes as a post-pandemic boom in demand for private healthcare in India has made the sector attractive, with global investors seeking an entry into healthcare chains in the country.

“Life sciences is a key investment theme for Blackstone and we plan to bring in our global scale and operating expertise,” said Ganesh Mani, managing director at Blackstone Private Equity.

In a separate deal, Care Hospitals will buy a majority stake in KIMSHEALTH, which operates under Kims Healthcare Management, to form one of Indias largest hospital platforms with 23 facilities and more than 4,000 beds across 11 Indian cities.

The value of both the deals is between $1.3 billion and $1.5 billion, the source added. The companies did not disclose financial terms of the deal.

TPG, which has a stake in Care Hospitals through its Evercare Health Fund, will retain a significant minority stake in the combined platform, the statement said.

Blackstone and Care did not immediately respond to Reuters queries seeking financial details.

Hong Kong-based investment firm BPEA EQT, Baring Private Equity Asia, will acquire a 60% stake in Indian fertility services provider Indira IVF for 54 billion indian rupees ($648.63 million), Reuters had reported in July, citing a source.

($1 = 83.2525 Indian rupees)