Blackstone's QCIL Acquires Kerala's KIMS Health Management For ₹3,500 Crore

According to reports in the media, private equity firm Blackstone's healthcare platform, Quality Care (QCIL), has recently inked a deal to purchase KIMS Health Management (KHML), a hospital chain in Kerala. 

This acquisition places a valuation of ₹3,500 crore (USD 400 million) on KHML. Under this agreement, QCIL will secure an 80-85 per cent stake in KIMS, while Dr MI Sahadulla, the founder and promoter of KIMS, will retain a 15-20 per cent stake and maintain control of the hospital business, the reports in media informed.

Reportedly earlier this year, Blackstone initiated its foray into India's healthcare sector with the acquisition of a majority stake in QCIL. As per media reports KIMS Health Management presently operates four operational hospitals in Kerala, located in Trivandrum, Kottayam, Kollam, and Perinthalmanna, with a collective capacity of 1,378 beds. Additionally, a 300-bed hospital in Nagercoil is scheduled to commence operations by March 2024. 

The report further states, it is anticipated that KIMS will report Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of ₹300 crore and a revenue of ₹1,000 crore in the fiscal year 2024. 

Blackstone's debut investment in the Indian healthcare sector was the acquisition of a significant stake in QCIL earlier this year, valued at USD 800 million (₹6,600 crore), the report added. CARE, which operates 15 hospitals in India and two in Bangladesh, has become a vital asset for Blackstone in the South Asia healthcare market, the report further said.