DCP Capital in Talks for China Maternity Hospital Chain

Beijing-based private equity firm DCP Capital Partners is in talks to acquire one of the leading maternity and pediatric care hospital chains in China, according to people familiar with the matter.

American-Sino OB/GYN/Pediatrics Services, also known as Meihua Hospital, could be valued at about $400 million to $500 million in a sale, one of the people said.

Discussions are ongoing and may not lead to a transaction, the people said, asking not to be identified as the matter is private. A representative for DCP declined to comment. A representative for Meihua Hospital didn’t immediately respond to requests for comment.

Meihua Hospital was set up in 2003 to provide women and children’s health care services in Shanghai, according to its website. It now serves more than 80,000 people each year with more than 400 physicians and nurses. It has facilities in Shanghai, Beijing and Hangzhou.

Founded in 2017, DCP Capital is led by former KKR & Co. and Morgan Stanley private equity dealmakers. Its medical and health care portfolios include investments in medical device maker Venus MedTech Hangzhou Inc. and umbilical cord blood storage company Global Cord Blood Corp., according to its website.

China has signalled willingness to ease birth restrictions further as the world’s most populous country is aging more quickly than most developed economies.

©2021 Bloomberg L.P.

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