Abu Dhabi’s NMC Health (NMC) has inked a deal with a German private healthcare company Fresenius Helios to sell its specialty IVF-care business Eugin Group for a total enterprise value of $525 million.
The private hospital operator Fresenius Helios which is buying Luarmia and Boston IVF Ventures is expected to complete the transaction with NMC by the end of the first half of 2021.
Early this year, NMC Healthcare mapped out a three-year business plan, which included a renewed focus on driving growth in its core markets in the Middle East and this deal represents an important strategic milestone in the delivery of the plan.
Luarmia, which has nearly 40 clinics and sites across Europe and Latin America, is a key player in-vitro fertilization (IVF) services. In 2015, NMC acquired the Luarmia, since then it has grown internationally and acquired clinics in countries including Brazil, Argentina, Sweden, Italy and Denmark.
A significant player in IVF services’ in the US, Boston IVF comprises approximately 25 clinics and sites. The healthcare company was obtained by NMC in 2018 and expanded across the US over the past two years. In 2019, Luarmia and Boston IVF jointly generated approximately $195 million in terms of revenues.
“The sale process was highly competitive, which is testament to the strength of Eugin Group’s offer through Luarmia and Boston IVF. We are delighted to have sold to such an established, international healthcare company in Fresenius Helios. Earlier this year we made the strategic decision to focus our resources on our core Middle Eastern assets and this was the key driver behind the decision to pursue a sale of Eugin Group.”
Commenting on the sale, the joint administrator of NMC Healthcare, Richard Fleming stated that the deal is an important step towards attaining the restructuring goal of NMC.
“The underlying business and financial performance of NMC Healthcare is strong and it continues to be a key operator in the UAE’s healthcare market. We are optimistic about the future of NMC as we head into 2021,” Mr. Fleming added.
NMC Health is a healthcare chain and distribution business subsidiary to NMC Holding LLC. The Abu Dhabi headquartered firm has branch offices in Dubai, Ajman, Al Ain and the Northern Emirates and manages over 200 facilities in 19 countries. The FTSE 100 listed company got into headlines with the biggest scandal, following the discovery of the company’s debt.