Quality Care, Backed by Blackstone acquires KIMS Health Management in a ₹3,300 Crore Deal

▴ Quality Care aquire KIIMS
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 promising future for Quality Care under Blackstone's ownership, solidifying its role as a major player in the healthcare sector.

In a significant development, the Blackstone-owned hospital platform, Quality Care (QCIL), has sealed the deal to acquire KIMS Health Management (KHML), Kerala’s leading hospital chain, at a valuation of ₹3,300 crore ($400 million). This move positions QCIL as the fourth-largest hospital group in India, owning close to 3,800 beds after the acquisition, trailing behind Apollo Hospitals, Manipal Health, and Fortis Healthcare.

Background of the Acquisition: QCIL, a Blackstone and TPG Growth joint venture, operates the renowned CARE Hospitals network. Blackstone holds a dominant 73% stake in QCIL, with TPG Growth owning the remaining 25%. Post the KIMS buyout, QCIL's substantial stake in KIMS places it in a robust position in the healthcare sector.

QCIL has acquired an impressive 80-85% stake in KIMS, leaving the founder and promoter, Dr MI Sahadulla, with a significant 15-20% stake. Dr. Sahadulla will continue to lead and manage the hospital business, ensuring a seamless transition and continuity.

Strategic Implications: This strategic move propels QCIL into a prominent position with a comprehensive network of hospitals. With a significant stake in KIMS, QCIL's total bed capacity is set to increase, solidifying its standing in the industry. Sources suggest that KIMS Health is anticipated to achieve Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of ₹300 crore and a revenue of ₹1,000 crore in the financial year 2024. This solid financial projection adds another layer of confidence to the acquisition.

Earlier Contenders and QCIL's Growth Trajectory: Back in August, it was reported that Blackstone emerged as the leading contender to acquire KIMS Health Management, valuing it at ₹4,000 crore. Manipal Health Enterprises was the other contender in the race. This follows Blackstone's acquisition of a 73% stake in QCIL from TPG Growth-backed Evercare in May.


The 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 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 promising future for Quality Care under Blackstone's ownership, solidifying its role as a major player in the healthcare sector.

Tags : #qualitycare #blackstone #KIIMS #aquisition #KHML #kerela #QCIL #TPG #healthcare #hospital #medicircle

About the Author


Sunny Parayan

Hey there! I'm Sunny, a passionate writer with a strong interest in the healthcare domain! When I'm not typing on my keyboard, I watch shows and listen to music. I hope that through my work, I can make a positive impact on people's lives by helping them live happier and healthier.

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