UAE-based NMC announces $525m sale of Eugin Group
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UAE-based NMC Health announces $525m sale of Eugin Group

UAE-based NMC Health announces $525m sale of Eugin Group

The transaction is expected to be complete by H1 2021

NMC Health (NMC), which consists of NMC Health and NMC Healthcare Ltd, has entered into an agreement to sell Eugin Group for a total enterprise value of $525m (€430m).

The sale of Eugin Group made to European private hospital operator Fresenius Helios, consists of Luarmia and Boston IVF Ventures. The transaction is expected to complete by the end of H1 2021.

In August 2020, NMC Healthcare set out a three-year business plan, which included a renewed focus on driving growth in its core markets in the Middle East.

NMC is committed to seeking exits on commercial terms from international activities that are not considered to be core operations. This transaction represents a strategic milestone in the delivery of the business plan.

Luarmia, which comprises approximately 40 clinics and sites across Europe and Latin America, is a key player in-vitro fertilization (IVF) services, performing over 25,000 cycles annually. It was acquired by NMC in 2015 and has since grown internationally having opened and acquired clinics in a number of countries including Brazil, Argentina, Sweden, Italy and Denmark.

Boston IVF, which comprises approximately 25 clinics and sites, is an essential player in the US for IVF services’, performing over 10,000 cycles annually. Boston IVF was acquired by NMC in 2018 and has grown significantly across the US over the past two years. On a combined basis, Luarmia and Boston IVF generated approximately $195 (€160m) of revenues in 2019.

Michael Davis, CEO of NMC Healthcare, said: “The sale process was highly competitive, which is testament to the strength of Eugin Group’s offer through Luarmia and Boston IVF. We are delighted to have sold to such an established, international healthcare company in Fresenius Helios.

“Earlier this year we made the strategic decision to focus our resources on our core Middle Eastern assets and this was the key driver behind the decision to pursue a sale of Eugin Group.

“This transaction marks another important step towards a successful restructuring for NMC,” said Richard Fleming, managing director of Alvarez & Marsal Europe and joint administrator of NMC and NMC Healthcare.

“Eugin Group is a high-quality, highly sought-after business, with an experienced management team and, following a robust process, we are pleased to have reached an agreement for its sale. The underlying business and financial performance of NMC Healthcare is strong and it continues to be a key operator in the UAE’s healthcare market. We are optimistic about the future of NMC as we head into 2021.”

Last week, NMC Health’s sister firm Finablr sold its business to an Israeli-UAE consortium for $1.

Read: Finablr sold for $1 to Israeli-UAE consortium

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