Blackstone owned Quality Care India Ltd. could Take Over Kerala’s KIMS (Image: kimshealth.org)
Quality Care India Ltd. (QCIL), a hospital platform, which is owned by the US Blackstone Inc is in agreement to buy Kerala’s KIMS Health Management (KHML). This acquisition is valued at Rs.3,300 core, i.e., $400 million, sources who were in the know said, reported the The Economic Times. The acquisition will also make QCIL own near to 3,800 beds, making it the fourth largest hospital group in India.
The QCIL has bought in a stake of 80-85 percent in KIMS, with the other 15-20 percent owned and kept by Dr. M I Sahadulla, the founder and promoter of KIMS hospital. The ET reported that he would further continue to take care of the hospital. From the current investor, True North, QCIL has a bought 55 percent, and a 20 percent from the stakes of the minority shareholders. Sources said that some additional stake has also been liquidated by Dr. Sahadulla and family.
KIMS has hospitals in Kerala’s capital, Thiruvananthapuram, and at other prominent cities in Kerala – Kottayam, Kollam and Perinthalmanna, which gives it a capacity of beds totaling up to 1,378. In March 2024, the group would be operational with a 300-bed capacity hospital at Nagercoil, Tamil Nadu too.
The other groups which were in the buyout race were Manipal Health Enterprises, Temasek Holdings CVC Capital and Max Healthcare.
QCIL works through the network, CARE hospitals, and the platform is owned by Blackstone and TPG growth. QCIL has 73 percent stake owned by Blackstone and 25 percent stake owned by TPG Growth. The acquisition which would bring near to 3,800 bed capacity would make the QCIL the fourth in place after Apollo Hospitals, Manipal Health and Fortis Healthcare.
Sources added that, for the FY 24, KIMS could register an expected return of Rs. 1,000 crore and post Earnings Before Interest, Taxes, Depreciation, and Amortisation of ₹300 crore, reported the ET.
With this acquisition, the Blackstone Private Equity would be making its debut into the Indian Health Care segment and also would be finding its presence known in the South Asian Health Care Scenario. In India, CARE boasts of 15 hospitals and in Bangladesh it has two hospitals.
