On Monday, global private equity firm Blackstone announced its entry into the Indian healthcare market by acquiring a majority stake in Hyderabad-based CARE Hospitals, which has inked a definitive agreement to acquire a majority stake in Kerala-based KIMSHEALTH from PE firm True North.

The $1 billion deal will establish India's largest hospital chain, comprising 23 hospitals across 11 cities, with over 30 clinical specialties, and 4,000 beds.

Market reports suggest Blackstone's buyout of CARE is over $700 million, while KIMSHEALTH's is around Rs 3,000-3,500 crore.

TPG, currently owning CARE Hospitals through the Evercare Health Fund, will retain a significant minority stake in the combined platform post-acquisition.

KIMSHEALTH, on the other hand, will continue to operate under its founder chairman and managing director Dr M I Sahadulla, despite True North selling its entire 61% stake in the Kerala-based chain.

Blackstone Private Equity's managing director, Ganesh Mani, has identified lifesciences as a key investment theme, intending to grow the platform organically and through acquisitions, focusing on building a patient-centric hospital platform.

“We plan to bring in our global scale and operating expertise and invest in world-class physical and medical infrastructure, enhance the companies’ digital and technological capabilities, add higher end quaternary care specialties, and cultivate a clinician and employee culture focused organization,” Mani said.

TPG partner Ankur Thadani said TPG would partner Blackstone to build CARE Hospitals Group into a leading healthcare network across India and South Asia, while KIMSHEALTH founder CMD Dr M I Sahadulla said the partnership with globally renowned players like Blackstone and TPG would strengthen KIMSHEALTH’s capabilities and help its business enter the next phase of growth by becoming a part of a leading healthcare platform.