UAE-based Amanat Holdings has bought Cambridge Medical and Rehabilitation Centre (CMRC) in a deal worth $232 million (AED851m) from private equity firm TVM Capital Healthcare.
In a statement to Dubai Financial Market (DFM), the GCC’s largest healthcare and education investment company, said the transaction was funded through a combination of cash on hand and leverage.
The deal marks Amanat’s first wholly owned investment in the healthcare sector in the UAE and one of the biggest GCC healthcare deals in recent years.
Cambridge Medical and Rehabilitation Centre (CMRC) Saudi Arabia.
CMRC is a leading post-acute care and rehabilitation (PAC) provider in the UAE and Saudi Arabia. Since inception, the company has grown to more than 250 beds across three facilities, two in the UAE, and one in the kingdom.
Alongside Sukoon, Amanat’s portfolio company and a major long-term care provider in Saudi, the statement said CMRC’s scalable business model will be “integral to Amanat’s strategy in building a regional PAC platform”.
Amanat chairman, Hamad Al Shamsi, said: “The acquisition of CMRC offers Amanat a profitable and scalable business. Alongside Sukoon, CMRC has enabled us to create the largest PAC platform in the GCC with nearly 500 beds across Abu Dhabi, Al Ain, Jeddah and Dhahran and the potential to increase demand-led capacity further.
“With this transaction, Amanat has fully deployed its paid-up capital of AED2.5 billion ($680.7 million) and now manages close to AED3 billion ($816.9 million) in assets. We continue to deliver on our strategic objectives to invest in high yielding assets that are leading the transformation in the healthcare and education sectors delivering further value to our shareholders.”
Dr. Mohamad Hamade, CEO of Amanat, added: “We have emerged as winners of a competitive bidding process to acquire this high-profile asset in CMRC, which will constitute the cornerstone of Amanat’s PAC platform. It is a genuinely unique and established provider with a leading market position and an experienced management team. In FY-2020, CMRC’s revenues hit a record high of $75.3 million, EBITDA of $22 million and net income of $15.2 million.”
Dr. Mohamad Hamade, CEO of Amanat.
On Sunday, Amanat Holdings revealed a net profit of $2.75 million for 2020, despite the economic impact of Covid-19, although this was down considerably by around 83 percent compared to the $16.3 million profits announced in 2019.
The company reported total income of $19.2 million for the last 12 months, down 36.8 percent year-on-year, while income from investments was $15.3 million, a drop of 22.3 percent of 2019 figures.
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