Updates

NMC Health - Acquires Saudi Arabian long-term care operator

October 2016

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The shares soared after NMC announced expansion into Saudi Arabia with the acquisition of As Salama Hospital (ASH) in Al Khobar, in the Eastern Province, which will add 140 beds. The hospital offers both acute care as well as long-term care (which NMC originally entered through its Provita acquisition) for chronic illness.The deal cost US$28m for a 70% stake and ASH’s EBITDA is expected to reach c. US$5m in 2017, growing to US$10m in the following three years. The valuation of 9x EV / EBITDA is attractive, with NMC noting that over 35% of ICU beds in Saudi are long-term care patients, its population is larger than the UAE, there are existing shortages of private care and also Government efforts to encourage privatisation. ...

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