Abu Dhabi-based firm announces purchase of Americare Group and Dr Sunny Healthcare Group
NMC Health, the London-listed and United Arab Emirates-based healthcare provider, has bought two healthcare service providers in the Gulf Arab state for an enterprise value of $100 million, NMC said on Wednesday.
The firm bought Americare Group, a provider of in-home healthcare in Abu Dhabi, the largest of the UAE's seven emirates, as well as Dr Sunny Healthcare Group, which runs six medical centres and three pharmacies in the emirate of Sharjah.
The pair had a combined earnings before interest, tax, depreciation and amortisation (EBITDA) of $11.5 million in 2014, the statement from NMC said.
Investors responded positively to the news - NMC's shares were trading 2.7 percent higher at 6.82 pounds at 0830 GMT.
Meanwhile, Numis raised its price target to 8.80 pounds on the back of the deals, the second time in six weeks it has increased the figure. .
"Both acquisitions are interesting as they diversify NMC's revenues (one into a new service line and one expanding geographically) and both can provide referrals into its existing specialty hospitals," Numis said.
The purchases add to the acquisition of a majority stake in Spanish fertility centre Clinica Eugin for an enterprise value of 143 million euros, announced in February.
NMC signed a $825 million loan in February which would be used to pay down existing debt and fund acquisitions.
NMC, founded by billionaire Indian entrepreneur BR Shetty, is one of the largest private sector healthcare providers in the UAE. It operates general and specialist hospitals, pharmacies and medical centres across the UAE with plans to expand across the Gulf.For all the latest health tips & news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.