NMC Health plc (LSE: NMC) ('NMC' or the 'Company'), the leading integrated private healthcare provider operating across the United Arab Emirates and one of the top global providers of fertility treatments through its Spanish subsidiary Clinica Eugin, is pleased to announce that it has completed its acquisition of ProVita International Medical Center LLC ("ProVita"), the leading provider of long-term medical care in the UAE, as announced on 15 June 2015.
Dr. B.R. Shetty, Executive Vice-Chairman and Chief Executive Officer of NMC Health, commented:
"I am pleased to announce the closing of NMC's acquisition of ProVita. As one of the largest providers in the long-term care market, ProVita meets the under-serviced demand for long-term care facilities in the UAE, which is expected to see substantial growth. The acquisition complements our strategy of being an integrated healthcare provider with centres of excellence across healthcare specialities and along the care pathway and fills the gap between short-term care offered by NMC's existing facilities and homecare service provided by the recently acquired Americare Group. The acquisition also supports our strategic expansion in Saudi Arabia and Qatar as ProVita progresses towards entering these markets."
ProVita - A leading provider of long-term care
Based in the UAE and established in 2011, ProVita is the first of its kind and one of only two pure play providers of long-term medical care in the UAE. Established in Germany in 1995 by Christina Shawky-Boehme, ProVita focuses on chronic ventilator-dependent patients, who require regular medical, nursing and rehabilitative treatments in a non-hospital environment.
ProVita has built a strong reputation in the market since its establishment, developing solid relationships with various healthcare facilities and authorities, thereby securing a steady flow of patient referrals from government-owned SEHA hospitals in the UAE, other hospitals in the UAE as well as those repatriated from abroad.
The acquisition extends NMC's service offering along the care pathway, adding to its existing portfolio of short-term, home care and ancillary services. It fills a gap between the short-term care currently offered by NMC's existing facilities and the in-home services offered by Americare, which was acquired in April and closed in June. By providing specialised long-term care, the acquisition also frees up NMC's ICU beds, which are currently occupied by long-term acute and sub-acute care patients. In addition, the acquisition extends NMC's access to Thiqa patients - those under Abu Dhabi's health care scheme for UAE nationals - further diversifying NMC's patient population.
The acquisition also supports NMC's expansion in the GCC region. ProVita has identified Qatar and Saudi Arabia as priority markets due to the increasing healthcare expenditure in both countries, high prevalence of chronic and lifestyle diseases, aging population, lack of dedicated long-term care facilities and a substantial number of patients seeking treatment abroad.
ProVita's strong and experienced management team are expected to remain at the Company.
Excluding synergies, the transaction is expected to be accretive with a positive effect on NMC's consolidated margins and yield an attractive ROIC.
Enquiries:
Media:
FTI Consulting, London
Matthew Cole
+44 (0)20 3727 1101
FTI Consulting, Gulf
Shane Dolan
+971 (0)4 437 2100
ABOUT NMC HEALTH
NMC Health plc group is the leading private sector healthcare operator in the United Arab Emirates, with a nation-wide network of hospitals and operations in the country since 1975. The Healthcare Division currently operates or manages eight hospitals, two day-care patient centres, nine medical centres and fifteen pharmacies. In addition, the Group owns and operates Clinica Eugin in Barcelona, Spain - one of the leading fertility treatment centres globally. NMC also owns and operates Americare Group, the leading home care provider in the UAE as well as ProVita, the leading provider of long-term medical care, also in the UAE. The enlarged company received almost 2.8m patients in 2014.The group also operates a significant UAE wide Distribution business supplying product lines across several key market segments, including: Pharmaceutical, FMCG, Food and Scientific and Medical Equipment. NMC Health plc group reported revenues of US$ 644m in 2014.
In April 2012 NMC Health plc was listed on the Premium Segment of the London Stock Exchange. At the time of its IPO, the group raised funds to enable it to pursue a further growth plan with a number of capital projects for new healthcare facilities in Abu Dhabi and Dubai. NMC Health plc is a constituent of the FTSE 250 Index.
© Press Release 2015
