1 Feb 2016 10:42
01 February 2016
NMC HEALTH PLC ANNOUNCES CLOSING OF ITS ACQUISITION OF A MAJORITY STAKE IN FAKIH IVF
NMC Health plc (LSE:NMC) ('NMC' or the 'Company'), the leading integrated private healthcare provider operating across the United Arab Emirates, is pleased to announce that it has completed ahead of guidance its acquisition of a 51% shareholding in Fakih IVF Group ('Fakih IVF'), the Middle East market leader for in-vitro fertilisation ('IVF') services, as announced on 24 November 2015.
Dr. B.R. Shetty, Chief Executive Officer of NMC, commented:
"I am delighted to announce the closing of this acquisition, which is a substantial step towards achieving NMC's goal of becoming a global leader in maternity and fertility services. This acquisition, our fifth in the past year, is fully in line with our strategy and demonstrates our focus on delivering sustainable long-term growth, strategic and competitive advantages and shareholder returns."
Fakih IVF - the Middle East market leader for in-vitro fertilisation services
Fakih IVF is the Middle East market leader for IVF services, performing over 4,000 IVF cycles per annum and offering the only full service genetics laboratory in the region. It currently operates centres in both Abu Dhabi and Dubai and is looking to expand its footprint within the UAE as well as in the Gulf Cooperation Council (GCC) region. Fakih IVF is expected to open three additional UAE centres during 2016 in Al Ain city, Western region of Abu Dhabi Emirate and Sharjah. Fakih IVF has also achieved considerable progress in its regional expansion plan with IVF centres expected in both Qatar and Oman before year end 2016.
This combination is expected to be highly synergistic with significant potential for cross-referral of patients and transfer of best practices and technologies within NMC's Maternity & Fertility vertical. Patients will have access to an integrated continuum of care with complementing capabilities and coordinated seamless service offering including local IVF treatments of the highest international standards at Fakih IVF, international referral to Clinica Eugin and its wider fertility service offering as permitted by its operational and regulatory environment and NMC's hospitals, led by Brightpoint, for antenatal, delivery and postnatal services.
Furthermore, this acquisition increases NMC's penetration into the Thiqa insurance segment, which is exclusively comprised of UAE nationals in Abu Dhabi where fertility treatment is covered. In addition, fertility treatments are one of the leading drivers of medical tourism in the UAE, and Fakih IVF will help position NMC as the destination of choice for fertility treatments with a complete service offering delivered by Fakih IVF and Clinica Eugin.
This acquisition confirms the NMC's position as one of the leading international providers of maternity and fertility treatment services.
As previously announced, NMC has agreed a mechanism by which it could increase its stake in Fakih IVF over time, based on certain conditions being met.
Excluding synergies, the transaction is expected to be significantly accretive to NMC's EPS in 2016 with an attractive ROIC in excess of NMC's cost of capital.
- ENDS -
Enquiries:
NMC Health plc
Prasanth Manghat, Deputy Chief Executive Officer+971 (0)50 522 5648
Suresh Krishnamoorthy, Chief Financial Officer+971 (0)50 5915365
Roy Cherry, Head of Strategy & Investor Relations+971 (0)50 667 0184
Media:
FTI Consulting, LondonMatthew Cole+44 (0)20 3727 1101
FTI Consulting, GulfShane 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 Group 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. In addition, NMC acquired a 51% shareholding in Fakih IVF Group, the Middle East market leader for in-vitro fertilisation ('IVF') services. NMC also owns and operates Americare Group, the leading home care provider in the UAE as well as ProVita, the pioneering provider of long-term medical care, also in the UAE. The enlarged company received almost 2.8m patients in 2014. The group is also a leading UAE supplier of products and consumables across several key market segments, with the major contribution coming from healthcare related products. 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. NMC Health plc is a constituent of the FTSE 250 Index.