UAE-based healthcare provider NMC Health is buying Al Zahra Hospital in Sharjah for $560 million, NMC's deputy chief executive told Reuters on Wednesday.
The deal has been finalised and the takeover of the privately owned Sharjah-based hospital will be in the first quarter of 2017, Prasanth Manghat said.
The Al Zahra Hospital is one of the largest private hospitals in the UAE, operating 137 active inpatient beds, serving approximately 400,000 outpatients and 23,000 inpatient bed days per year.
It provides services of an international standard, supported by state-of-the-art facilities including cutting edge radiology and laboratory practices, as well as seven operating theatres, recovery room beds, more than 80 individual clinics, a maternity complex and emergency room beds, including triage.
The Al Zahra Hospital last year achieved revenues of $130.4 million, and net profit of $38.8 million respectively. NMC has identified approximately AED23.7 million ($6.5 million) of annual cost synergy benefits expected to be derived from the acquisition from the second year post completion onwards.
Dr BR Shetty, CEO of NMC, said: “Our expansion into the Sharjah healthcare market represents another major advance towards our objective of developing a leading integrated private healthcare operator in the UAE. We remain committed to further develop the local healthcare market by offering best in class services and facilities to our patients.
“The acquisition of Al Zahra Hospital is fully in line with our strategy and demonstrates our focus on delivering long-term growth of our strategic and competitive capabilities to expand sustainable shareholder returns.”
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In August, NMC Health reported a 48 percent year-on-year increase in adjusted net profit for the first six months of 2016, to $67.8 million.
It also reported its highest revenue growth on record, it said. Revenues increased by 46.9 percent year-on-year to reach $578.3 million in H1 2016, while earnings before interest, tax, depreciation and amortization (EBITDA) rose 68.2 percent to $115.9 million over the same period, resulting in a group EBITDA margin of 20 percent.