UAE based healthcare firm NMC Health plc recently announced two new business acquisitions along with a new operating and management (O&M) contract.
The company has acquired a 70 percent worth $170 million stake in CosmeSurge which is a cosmetic surgery and aesthetic medicine provider. Also an 80 percent stake has also been bought by NMC in the Riyadh-based Al Salam Medical Group.
The deal with CosmeSurge includes a chain of 17 operational clinics, with the business expected to deliver 2017 revenues and EBIDTA (earnings before interest, taxes, depreciation and amortization) of $67 million and $20.5 million, respectively.
Furthermore the acquisition in Riyadh includes the 100-bed Al Salam Medical Hospital, the Al Salam Medical Center, and the Ishbilia Medical Center. The acquisition is expected to be completed in the first half of this year.
Another deal made by the company which is expected to generate revenues of $2 million for NMC in the first year of operation is the new O&M contracts with Emirates Healthcare Group to manage its Egyptian hospitals, Dar Al Fouad and As Salam International.
Prasanth Manghat, NMC CEO, commented “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 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.”
Such consecutively occurring deals by NMC is all part of its efforts to expand its business in the entire Middle Eastern region.
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