NMC Health to buy Al Zahra Hospital for $560m

UAE-based healthcare provider NMC Health announced the proposed acquisition of Al Zahra Hospital in the Sharjah from Gulf Medical Projects for around $560m.

NMC said the deal complements its existing network of seven out-patient medical centres in Sharjah, further strengthening its position as the largest private healthcare provider in the UAE and the Gulf Cooperation Council region.

In the year to the end of December 2015, the Al Zahra Hospital – one of the largest private hospitals in the UAE – achieved revenue, earnings before interest, taxes depreciation and amortisation and net profit of $130.4m, $43.5m and $38.8m, respectively.

NMC said it has identified approximately $6.5m of annual cost synergy benefits from the second year post completion of the acquisition onwards. In addition, it reckons there are a number of other operational and synergistic benefits that will accrue over the medium term.

Chief executive officer Prasanth Manghat said: "The acquisition of one of the leading and most reputable hospitals in Sharjah carries tremendous strategic significance for NMC and expands the group's reach within the region through our top-in-class offering, track-record and brand.

“This attractive and complementary deal is expected to deliver significant benefits for patients, as well as attractive synergies and be accretive for NMC shareholders in the first full year."