Aster DM Healthcare Strengthens Position with Quality Care Merger

Aster DM Healthcare, one of India's largest healthcare providers, has announced a merger with Quality Care India, a hospital operator backed by Blackstone. This move places Aster closer to its major competitors, Apollo Hospitals and Manipal Hospitals. This is the first major acquisition by Aster since it sold its Gulf business. As part of the consolidation, Aster will get a bed count of 5,500 from Quality Care and take the total bed count of the merged entity to over 10,000. With the acquisition, Aster is set to significantly expand its capacity in the domestic market to become one of the top three hospital chains in India, like Apollo and Manipal.

The merged entity, which will be called Aster DM Quality Care, plans to add another 3,500 beds by fiscal year 2027, funded through internal accruals. Earlier this year, Aster laid out plans to spend up to $108 million to boost its domestic capacity across the 19 hospitals it runs in India.

The combined entity will be jointly controlled by Aster's top shareholders and Blackstone, with respective holdings of 24% and 30.7%. The company did not specify the size of the deal.

Post the merger, Aster's shareholders will hold a 57.3% stake in the combined firm, with Quality Care which operates CARE Hospitals, KIMS Health and Evercare hospital chains in India owning the rest.

Azad Moopen, Aster's founder and managing director, will continue in his role and oversee the merged entity, while Varun Khanna, MD of Quality Care, will helm the merged entity as the CEO, the two companies said.

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