UAE based New Medical Centre (NMC) has grabbed two new acquisitions in Saudi Arabia; giving the Emirati entity a foothold in the kingdom.
NMC health has grabbed a 70% stake in CosmeSurge, a chain of 17 cosmetic clinics and has taken over an 80% stake in Riyadh-based Al Salam Medical Group at the same time.
The company has its headquarters in Abu Dhabi and has branches in Ajman, Dubai, and Al Ain and in Northern Emirates. As a healthcare chain and distribution business in the UAE, the company is listed on the London Stock Exchange.
Founded in Abu Dhabi by BR Shetty in 1974, the centre expanded to a full-fledged hospital in 1981 taking full advantage of the oil boom in the United Arab Emirates. A new marketing and distribution division was also launched that same year as NMC Trading specializing in the distribution of medicines to pharmacies in the United Arab Emirates (UAE). This division later expanded to distribute fast-moving consumer goods, medical equipment and supplies and also educational products.
It began expanding to other emirates from 1996 with the setting up of the NMC Clinic in Sharjah. The NMC Hospital was established in Dubai in 1999 and 5 years later, the NMC Specialty Hospital was also established in the emirate capital.
NMC was listed on the London Stock Exchange in April 2012 and it began managing operations at the Sheikh Khalifa General Hospital in Umm Al Quwain that same year. It acquired the BR Medical Suites in Dubai Healthcare City and went on with its expansion by adding new medical setups in the subsequent years.
The UAE-based hospital operator’s Saudi acquisitions are valued at more than $200 million; a solid sign of its intentions to expand into Saudi Arabia.
The Saudi acquisitions add a 100-bed hospital and two clinics in Riyadh to their collection. The company said that it paid $170 million for the CosmeSurge stake and a $37 million in its Al Salam Medical Group investment.
Prasanth Manghat, the CEO of NMC said that the acquisition of Al Salam further extends their geographic footprint in the kingdom thus strengthening their leading position as a non-domiciled provider.
He further added that Saudi Arabia remains a key focus market for them and in spite of already reaching 800 beds across existing and under-construction assets in the kingdom; they continue to see strong growth opportunities in the Kingdom.
NMC is eyeing Egypt as the next frontier for its expansion.