January 22, 2018 / 9:48 AM / 7 months ago

UAE’s NMC Health makes two Gulf acquisitions worth $207 million

ABU DHABI (Reuters) - NMC Health has made two acquisitions worth $207 million, the London-listed and United Arab Emirates-based healthcare provider said on Monday.

NMC acquired a 70 percent stake in UAE-based CosmeSurge for $170 million and an 80 percent stake in Saudi Arabia’s Al Salam Medical Group for $37 million, the company said in a bourse filing.

The cash acquisition of CosmeSurge, which provides cosmetic surgery and aesthetic medicine, is expected to be completed during first quarter of 2018. It has an enterprise value of $250 million and is expected to report a 2017 EBITDA of $20.5 million on revenue of $67 million, the statement said.

CosmeSurge operates 17 clinics with a 10-bed hospital and two new clinics currently under construction in the UAE.

“These value accretive and earnings enhancing transactions fit well with our growth strategy,” NMC CEO Prasanth Manghat said.

The Al Salam transaction is expected to be completed in the first half of the year, the statement said/

It said the Riyadh-based group’s assets include a 100-bed Al Salam Medical Hospital, the Al Salam Medical Centre and the Ishbilia Medical Centre.

NMC also said it signed new operations & management (O&M) contracts with Emirates Healthcare Group to manage its two Egyptian hospitals with a combined capacity of 860 beds.

Reporting by Stanley Carvalho; editing by Jason Neely

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