Deals include a 70% stake in a cosmetic medicine provider worth $170m, says NMC Health
Abu Dhabi, United Arab Emirates.-Monday, January 22nd 2018 [ AETOS Wire ]
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.”
Farah Al Obaidi, Head of Media Relations, + 971501714347, +971503323158
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