Monday 19 February 2018
 
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BIG STAKE IN SAUDI HOSPITAL

NMC Health announces $200m new acquisitions

ABU DHABI, 27 days ago

UAE healthcare operator NMC Health has announced two new acquisitions worth over $200 million and also the completion of new operating and management (O&M) contract as the company moves to expand across the Middle East.

Among the acquisitions are a 70 per cent stake in CosmeSurge, a cosmetic surgery and aesthetic medicine provider, for $170 million.

The Emirati group also signed a new O&M contracts with Emirates Healthcare Group to manage its Egyptian hospitals, Dar Al Fouad and As Salam International.

The deal is expected to generate revenues of $2 million for NMC in the first year of operation, said the company in a statement.

In a statement, NMC noted that the transaction includes a chain of 17 operational clinics, with the business expected to deliver 2017 revenues and ebitda of $67 million and $20.5 million, respectively.

The Abu Dhabi-based company also bought an 80 per cent stake in Al Salam Medical Group, a major healthcare group in Riyadh, Saudi Arabia.

The transaction, which is expected to be completed in the first half of 2018, includes the 100-bed Al Salam Medical Hospital, the Al Salam Medical Center, and the Ishbilia Medical Center.

On the strategic deals, CEO Prasanth Manghat said: "These value accretive and earnings enhancing transactions fit well with our growth strategy. CosmeSurge represents a continuation of building NMC’s capabilities and Al Salam further extends our geographic footprint in the Saudi Arabia, cementing our leading position as a non-domiciled provider."

NMC sees “substantial opportunities for revenue and cost synergies” across both acquisitions," he stated.

“The cosmetics business in particular has the potential to be further developed into an independent business vertical at a later stage,” remarked Manghat.

“Moreover, Saudi Arabia remains a key focus market for us and despite already reaching 800 beds across existing and under-construction assets in the country, we continue to see strong growth opportunities in the kingdom,” he added.-TradeArabia News Service




Tags: Saudi | acquisitions | NMC | CosmeSurge |

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