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Shetty’s NMC buys ProVita for $160m

|By TAP Staff| LSE-listed leading UAE healthcare player NMC Health announced entering into an agreement to acquire ProVita International Medical Center, provider of long-term medical care in the UAE, for an equity consideration of $160.6 million.

The payment will be made in cash, from TVM Capital Healthcare Partners, the Olayan Group, Al Zarooni Emirates Investment and other minority shareholders, the company said.

ProVita is a pioneer in the under-supplied long-term care healthcare market segment in the UAE and is one of the largest providers in the country. Currently, ProVita operates a total of 90 long-term care beds in Abu Dhabi and Al Ain, with a further 30 beds expected to become operational in Abu Dhabi by Q3 2015.

The acquisition, adds some 120 beds to NMC’s expected 2015 licensed bed capacity of 720 for a total of 840 beds. All of ProVita’s operational assets are Joint Commission International (JCI) accredited.

Dr. B.R. Shetty, Executive Vice-Chairman and Chief Executive Officer of NMC Health, said the acquisition of ProVita marks the entry of NMC into the strategic and under-supplied UAE long-term care market.

It enhances NMC’s value proposition as an integrated healthcare service provider by plugging the service gap between acute short-term care provided by NMC’s existing facilities and homecare service provided by the recently acquired Americare Group, he pointed out.

Encouraged by its success in the UAE, ProVita has been progressing towards entering the key markets of Saudi Arabia and Qatar.

NMC says this is in line with the group strategy of expanding in the GCC region and with NMC’s strategy of increased specialisation, founded on the centres of excellence approach, which is delivering growing competitive advantages within highly synergistic yet potentially independently scalable and franchisable areas of healthcare services. These include Mother Care & Fertility, Cardiology, Orthopaedics, Urology, Ophthalmology, Home Care and now Long-term Care.

ProVita generated an adjusted EBITDA of $11.1 million and an adjusted Net Income of $9.1 million for the financial year ended 31 December 2014 and, based on unaudited management accounts, an adjusted EBITDA of $12.7 million and an adjusted Net Income of $10.7 million for the 12 month period to 31 March 2015.

ProVita had a net cash position of $1.3 million as of 31 March 2015, based on unaudited management accounts.