NMC spends almost $100 million to acquire two new health groups
NMC Health has bought two new health groups for almost US$100 million as it expands in the home care market.
It bought the Abu Dhabi-based home care service provider Americare Group and Dr Sunny Healthcare Group, a chain of six medical centres and three pharmacies in Sharjah, using existing cash and credit facilities.
Both the acquired companies employ 125 doctors in total.
“Since these deals add complementary business lines and geographical exposure, we would expect revenue synergies in time,” said Charles Weston, the director of healthcare equity research at Numis Securities.
NMC expects to drive growth through cross-referrals across the group, according to Roy Cherry, the head of strategy and investor relations at NMC Health. “Our plan is for both these successful businesses to keep their brand names,” he said.
NMC will acquire 90 per cent of Americare for $33 million. Last year, it reported revenues of $15.2m and earnings before interest, taxes, depreciation, and amortization of $4.8m. At the end of last year, its assets were valued at $6.6m and it had about 170 employees.
Americare will add to NMC’s growing hospital portfolio, as well as providing home-based services, such as IV infusion therapy, wound care management, physical and occupational therapy, respiratory therapy and speech therapy.
A majority of Americare’s patients are insured by the Thiqa programme, the policy run by insurer Daman for Emiratis.
It also has a medical centre under its American SurgeCenter division staffed with doctors specialising in general medicine, gynaecology and obstetrics, cosmetic dentistry and plastic surgery, among others. It operates a pharmacy in Khalidiya in Abu Dhabi.
The full acquisition of Dr Sunny Healthcare Group for $64m will expand NMC’s footprint in Sharjah, where it already owns New Medical Center.
Dr Sunny Healthcare provides services in paediatrics, gynaecology, cardiology, neurology, general surgery, dental care and physiotherapy as well as lab services. It treats 1,300 patients a day.
Last year, Dr Sunny recorded revenues of $32.7m and earnings before interest, taxes, depreciation, and amortization of $6.7m. At the end of last year, its assets were valued at $20m.
In February,London-listed NMC acquired a majority stake in Barcelona-based Clinica Eugin for €143m (Dh579.1m) from the Spanish venture capital firm ProA Capital.
NMC reported a net profit last year of $77.5m, up 12.1 per cent year-on-year.
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Updated: April 29, 2015 04:00 AM