In a significant development for India’s healthcare landscape, Aster DM Healthcare and Quality Care India (Care Plus KIMSHealth), backed by Blackstone and TPG, have signed definitive agreements for a merger. This strategic union positions the merged entity among India’s top three hospital chains, rivaling industry giants such as Apollo Hospitals and Manipal Hospitals.

The agreement grants joint control of the new entity to Aster promoters and Blackstone, who will hold 24% and 30.07% stakes, respectively. Valuing Aster at an impressive 36.6x FY24 adjusted post IND-AS EV/EBITDA, the transaction underscores the growing appeal of India’s healthcare sector to global investors.

Dr. Azad Moopen, the visionary founder of Aster DM Healthcare, will continue as Executive Chairman and oversee the merged entity, ensuring its growth and alignment with the mission to deliver quality healthcare.

This merger creates a healthcare powerhouse with over 10,150 beds, significantly enhancing the reach and capacity of both brands. With its robust network and commitment to excellence, the combined entity is expected to set new benchmarks for patient care and clinical outcomes in India.

Also Read: Strategic Acquisitions & Major Developments in India’s Healthcare Sector

For Blackstone, this deal represents a rapid and remarkable consolidation in the Indian hospital sector. Within just two years, the private equity giant has made its mark through strategic investments, creating a formidable presence with the acquisition of Care Hospitals and KIMSHealth, now further solidified by this merger with Aster.

The merger is poised to reshape India’s healthcare sector, fostering innovation, increasing accessibility, and driving significant improvements in patient care across the country.

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