EFG Hermes advises TPG’s Evercare Group on $72.4m IDC deal

EFG Hermes’ investment banking division served as the advisor to TPG’s Evercare Group on the sale of its 50 per cent stake in Islamabad Diagnostic Centre (IDC) to Integrated Diagnostics Holding (IDH) for $72.35m.

Evercare Group is a healthcare delivery platform managed by TPG and backed by The Rise Fund. EFG Hermes acted as the sell-side advisor to TPG.

IDH, a consumer healthcare company with operations in Egypt, Jordan, Sudan, and Nigeria, signed the agreement with IDC by purchasing a 50 per cent equity investment in Base Consultancy UAE, the special purpose vehicle (SPV) that controls 100 per cent of IDC.

IDC, a radiology and pathology diagnostics service provider in Pakistan, provides a range of imaging and lab services across a national network of over 80 branches in 30 cities.

IDH plans to finance the transaction through a combination of existing cash and committed debt facilities. The debt package includes the $45m facility secured from IFC in May 2021, and an additional $15m IFC syndicated facility from Mashreq Bank.

The transaction is subject to regulatory approval.

Ali Khalpey, CEO of EFG Hermes Frontier, said: “This marks EFG Hermes’ first inbound transaction into Pakistan, and showcases our ability to connect our clients across our markets.”

Meanwhile, EFG Hermes Holding reported EGP1.1bn in net profit for the first nine months of 2021, marking a 26 per cent year-on-year increase.

Its revenues from January through September also rose 8 per cent over the same period last year to reach EGP4bn.

Read: EFG Hermes Holding reports 26% increase in net profit for first nine months of 2021

The group’s operating expenses declined 14 per cent year-on-year to reach EGP760m in 3Q21, predominately on lower employee expenses. For the third quarter, EFG Hermes’s net profit after tax and minority interest stood at EGP356m, down 16 per cent year-on-year, while its sell-side revenues grew 45 per cent year-on-year to EGP406m.