Fosun and partners buy US hospital operator Chindex for US$433m in sweetened deal

Shanghai Fosun Pharmaceutical and its partners agreed to acquire hospital operator Chindex International for about US$433 million after raising their offer to counter another bidder.

The group comprising Fosun Pharma, TPG Capital and Roberta Lipson, Chindex's chief executive, boosted its offer for the hospital operator to US$24 a share from US$19.50, the drugmaker said.

Chindex, based in Maryland, said in a separate statement that it signed an amended agreement with the group after another bidder, which earlier offered US$23 a share, declined to bid further.

The purchase will allow Fosun Pharma, a maker of modern drugs and traditional Chinese medicine, to expand its care capabilities as the mainland eases controls on foreign investment in hospitals.

Chindex runs the United Family Healthcare chain of high-end hospitals in cities including Beijing, Shanghai and Guangzhou, and demand for such facilities is set to rise as the world's most populous country improves health care standards.

"United Family is in an attractive business because there's a growing need for high-end medical care in China, and there isn't enough supply due to very high barriers to entry for the hospital industry," said Johnson Sun, an analyst at Guotai Junan Securities Hong Kong.