The deal to acquire Gulf International Cancer Center is valued at up to Dh98 million.
Abu Dhabi’s Al Noor Hospitals buys Gulf cancer centre
Al Noor Hospitals Group, the largest private healthcare service provider in Abu Dhabi, has acquired Gulf International Cancer Center in a deal worth up to Dh98 million.
The acquisition falls in line with the company’s goal to widen its range of services to patients.
“We are delighted that Gulf International Cancer Care Center is joining Al Noor Hospitals Group, adding a new core competency to the range of healthcare services we already provide,” said the chief executive, Kassem Alom. “This is exactly the kind of acquisition we promised investors at the time of Al Noor’s flotation.”
It has been a year of steady growth for the group, which listed on the London Stock Exchange in June, with a share sale valuing the company at more than US$1 billion. It since posted revenues of $84m in the three months to September compared to $75.4m in the same period in 2012.
The Gulf International Cancer Center adds a fresh expertise to its offering. Founded in 2004, the centre in Al Bahia offers radiation therapy, medical oncology and PET/CT scan services.
Cancer is estimated to be the third leading cause of death in the UAE, after heart disease and accidents. “Cancer care is forecast to increase at 10-14 per cent annually in Abu Dhabi, and GICC has the capacity to serve a significant number of patients with their treatment,” said Dr Alom.
Acquisitions within health care in the capital have surged this year as the Government has sought the help of the private sector to raise the quality of services.
In June, Waha Capital, the Abu Dhabi-based investment company, took a 97 per cent stake in Anglo-Arabian, which operates clinics, laboratories and hospitals in the Northern Emirates.
In recent months, Al Noor Hospitals has concluded the purchase agreements on two other acquisitions: Al Madar Medical Centre, a medical centre focused on dentistry and cosmetics in Al Ain and Manchester Clinic, its first step in the Dubai market. Together, the 75 per cent acquisitions were valued at $16m.
Al Noor said the latest acquisition would add a new core competency to the company and broaden its range of services to patients.
The deal includes an initial cash outlay of Dh80m and an additional one-off payment of Dh10m to be paid upfront for lease rent. Further payments of up to Dh8m will be payable subject to performance up to the end of next year.
Gulf International Cancer Center achieved revenues of Dh38.2m for the year ended December 31, 2012. As of March 31, it had gross assets of Dh79.7m.
Al Noor has also commissioned three medical centres this year. One is at Mamura on Muroor Road, Abu Dhabi, one is in Sanaya, an industrial area of Al Ain. And the third is in Muscat, the group’s first facility outside the emirate of Abu Dhabi.