QCIL Signs Agreement to Acquire KHML Chain of Hospitals
Blackstone-owned hospital platform Quality Care (QCIL) has signed an agreement to acquire KIMS Health Management (KHML), Kerala's leading hospital chain, for $3,300 crore ($400 million). Blackstone and TPG Growth own QCIL, the platform that runs a network of CARE Hospitals. TPG Growth owns 25% of QCIL, while Blackstone owns 73%. After the KIMS acquisition, QCIL will own nearly 3,800 beds, making it the fourth-largest hospital group after Apollo Hospitals, Manipal Health, and Fortis Healthcare.
QCIL has acquired an 80-85% stake in KIMS, while Dr. MI Sahadulla, the hospital's founder and promoter, will retain a 15-20% stake and continue to run the business. On August 14, ET reported that Blackstone is the frontrunner to acquire KIMS Health Management for 4,000 crore. Manipal Health Enterprises was the other remaining contender for KIMS.
QCIL acquired a 55% stake from existing investor True North, as well as a 20% stake from minority shareholders. According to additional sources, Sahadulla and family have diluted their stake in this transaction. KIMS Health operates four hospitals in Kerala, with a total capacity of 1,378 beds: Trivandrum, Kottayam, Kollam, and Perinthalmanna. It plans to open a 300-bed hospital in Nagercoil by March 2024.
According to sources, KIMS is expected to report earnings before interest, taxes, depreciation, and amortization of 300 crore and revenue of 1,000 crore in FY24.