UAE’s NMC Health seals latest buy with $160.6m ProVita deal

NMC Health, the London-listed and United Arab Emirates-based healthcare provider, plans to fully acquire ProVita International Medical Centre LLC for $160.6 million, NMC said on Monday, as it continues to expand through acquisitions.

NMC has signed an agreement to acquire 100 per cent of ProVita for cash from TVM Capital Healthcare Partners, Saudi Arabia’s Olayan Group, Al Zarooni Emirates Investment and other minority shareholders, it said in a statement.

The acquisition is due to be completed by the third quarter of this year, with consolidation into its results effective from April 1, 2015.

News of the acquisition sent NMC’s shares up 2.4 per cent at 0735 GMT, with Jefferies saying in a note that it expected “a favourable share price reaction over the next days and for NMC’s price-to-earnings premium to continue to widen”.

It is the latest acquisition from NMC, which in April bought two healthcare service providers in the UAE for an enterprise value of $100 million.

ProVita is a long-term healthcare provider in the UAE operating 90 beds with a further 30 beds expected to come by the third quarter this year.

The acquisition will add to NMC’s earnings within the first year, said NMC Chief Executive B.R. Shetty.

NMC, founded by billionaire entrepreneur Shetty, is one of the largest private sector healthcare providers in the UAE. It operates general and specialist hospitals, pharmacies and medical centres across the UAE and plans to expand across the Gulf.

NMC signed a $825 million loan in February which would be used to pay down existing debt and fund acquisitions.