UAE Healthcare Firm Announces New Acquisitions Worth Over $200 Million
UAE healthcare operator NMC Health plc has announced two new acquisitions and 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 percent stake in CosmeSurge, a cosmetic surgery and aesthetic medicine provider. According to NMC, the acquisition is worth $170 million.
NMC 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.
In a statement, NMC noted that the transaction includes a chain of 17 operational clinics, with the business expected to deliver 2017 revenues and EBIDTA of $67 million and $20.5 million, respectively.
NMC also acquired an 80 percent stake in the Riyadh-based Al Salam Medical Group. 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.
“These value accretive and earnings enhancing transactions fit well with our growth strategy,” said Prasanth Manghat, NMC CEO. “CosmeSurge represents a continuation of building NMC’s capabilities and Al Salam further extends our geographic footprint in the KSA, cementing our leading position as a non-domiciled provider.”
Manghat added that NMC sees “substantial opportunities for revenue and cost synergies” across both acquisitions.
“The cosmetics business in particular has the potential to be further developed into an independent business vertical at a later stage,” he added. “Moreover, KSA 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.”
NMC Healthcare is the largest private healthcare company in the UAE and ranks amongst the leading fertility service providers in the world. Over the last forty three years, NMC has earned the trust of millions, thanks to its personalized care, genuine concern and a sincere commitment to the overall well-being of the patient.
NMC was the first company from Abu Dhabi to list on the London Stock Exchange and is now part of the premium FTSE 100 Index, an elite club of top 100 blue-chip companies by market cap. NMC's strategic acquisitions coupled with its legacy institutions have allowed us to fill the service gap in our healthcare delivery system and offer a continuum of care to patients