Troubled UAE-based NMC Health on Monday announced it has entered into an agreement to sell the Eugin Group to Fresenius Helios for a total enterprise value of €430 million ($523 million).
The transaction, which is part of a restructuring process which aims to offload non-core operations, is expected to complete by the end of the first half of 2021.
Founded by Indian entrepreneur Bavaguthu Raghuram Shetty, NMC had a peak market value of $10 billion on the London Stock Exchange before the uncovering of billions of dollars of undisclosed debt pushed it into administration.
Caretakers Alvarez & Marsal are now working on a turnaround plan that will see NMC focus on its UAE and Oman domestic markets, while selling non-core international assets.
Richard Fleming, managing director of Alvarez & Marsal Europe and joint administrator of NMC and NMC Healthcare, said: “This transaction marks another important step towards a successful restructuring for NMC.
“The underlying business and financial performance of NMC Healthcare is strong and it continues to be a key operator in the UAE’s healthcare market. We are optimistic about the future of NMC as we head into 2021.”
Richard Fleming, managing director with Alvarez & Marsal
In August, NMC Healthcare set out a three-year business plan, which included a renewed focus on driving growth in its core markets in the Middle East.
Eugin Group is made up by Luarmia and Boston IVF Ventures. Luarmia, which comprises approximately 40 clinics and sites across Europe and Latin America, is a global leader for in-vitro fertilisation (IVF) services, performing over 25,000 cycles annually.
Luarmia was acquired by NMC in 2015 and has since grown internationally having opened and acquired clinics in a number of countries including Brazil, Argentina, Sweden, Italy and Denmark.
Boston IVF, which comprises approximately 25 clinics and sites, is a national leader in the US for IVF services’, performing over 10,000 cycles annually. Boston IVF was acquired by NMC in 2018. On a combined basis, Luarmia and Boston IVF generated approximately €160m of revenues in 2019.
Michael Davis, CEO of NMC Healthcare, said: “The sale process was highly competitive, which is testament to the strength of Eugin Group’s offer through Luarmia and Boston IVF. We are delighted to have sold to such an established, international healthcare company in Fresenius Helios.
“Earlier this year we made the strategic decision to focus our resources on our core Middle Eastern assets and this was the key driver behind the decision to pursue a sale of Eugin Group.”
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