Luye Medical Group Co announced on Monday that it has agreed to buy private equity-owned Australian hospital operator Healthe Care Pty Ltd in the Chinese company's first foray into the hospital sector.

The final price was not disclosed but local media had reported the deal was worth A$938 million ($688 million).

Luye Medical beat rival bids from Baring Private Equity and Bain Capital, which banking sources said were also in the running for Australia's third-largest privately owned hospital operator. The sources declined to be named as they were not authorized to speak about the transaction.

"I strongly believe that Healthe Care will provide us with a platform upon which we can build a world class and highly successful healthcare services business not only in Australia and China, but also in other countries and regions in Asia," said Liu Dianbo, chairman of Luye Group.

The company, part of the privately owned Luye Group, was advised by Barclays.

Archer Capital had bought Healthe Care in 2011 for A$230 million. Morgan Stanley and Luminis Partners advised Archer on the sale.

Healthe Care operates 17 private hospitals across five Australian states with more than 1,800 hospital beds, according to information on its website.

Reuters