NMC Healthcare announces new acquisitions

NMC Healthcare announces new acquisitions

LONDON, 22nd January 2018 (WAM) – UAE-based NMC Healthcare today announced two new acquisitions and the completion of new Operating and Management (O & M) contracts that indicate further progress in line with its strategic priorities to expand capacity, capabilities and geographic reach. NMC Healthcare is listed on the London Stock Exchange, LSE, where it is a component of the FTSE 100 Index.

In early trading on the LSE, shares in the company rose sharply, reaching a new high of 34.02 pounds sterling, an increase of 122 pence, at 09.20 am London time.

In the UAE, the company has acquired a 70 per cent stake in CosmeSurge, an industry leader in providing quality cosmetic surgery and aesthetic medicine, and related businesses. CosmeSurge currently have 17 operational clinics with a 10-bed hospital and two new clinics due to open in the first half of this year. The deal is worth US$170 million, which will be paid in cash. The deal is expected to be completed during the first quarter of 2018.

CosmeSurge and related business have been acquired from Emirates Healthcare Group, which is controlled by KBBO Group, a consortium of private investors in Abu Dhabi with a portfolio of interests across a variety of sectors. NMC currently provides invasive cosmetic procedures and complex surgeries and the addition of CosmeSurge will substantially enhance the Company’s cosmetics and aesthetics offering. NMC Healthcare has managed CosmeSurge and related businesses since September 2017 under an O&M contract.

In Saudi Arabia, NMC Healthcare has acquired an 80% stake in Al Salam Medical Group, a healthcare company in Riyadh, the largest healthcare market in the kingdom. The transaction is expected to be completed in H1 2018 and includes the 100-bed Al Salam Medical Hospital, commissioned in 2016, the Al Salam Medical Centre, established in 1985, and the Ishbilia Medical Centre, established in 2003.

A sum of US$37 million is payable on closing of the deal, with a further payment after one year, based on financial performance.

NMC Heathcare has also signed new Operations & Management (O&M) contracts with Emirates Healthcare Group to manage its Egyptian hospitals, Dar El Fouad and As Salam International, which have a combined capacity of 860 beds. The contract will generate revenues of US $ 2mn in the first year of operation.

"These value accretive and earnings enhancing transactions fit well with our growth strategy," NMC Healthcare’s Chief Executive Officer, Prasanth Manghat, said. "CosmeSurge represents a continuation of building NMC’s capabilities and Al Salam further extends our geographic footprint in the Kingdom of Saudi Arabia, cementing our leading position as a non-domiciled provider. We see substantial opportunities for revenue and cost synergies across both acquisitions, and the Cosmetics business in particular has the potential to be further developed into an independent business vertical at a later stage. Moreover, the kingdom 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."