Amanat Holdings PJSC the GCC’s largest healthcare and education investment company has announced the full acquisition of Cambridge Medical and Rehabilitation Center (CMRC) for an enterprise value of Dh851 million from TVM Capital Healthcare, an emerging market focused private equity firm. The transaction was funded through a combination of cash on hand and leverage. The transaction marks Amanat’s first wholly owned investment in the healthcare sector in the UAE and one of the biggest GCC healthcare deals in recent years.
CMRC is a leading post-acute care and rehabilitation (PAC) provider in the UAE and KSA. Since inception, CMRC has grown to more than 250 beds across three facilities, two in the UAE, and one in the KSA. Alongside Sukoon, Amanat’s portfolio company and a major long-term care provider in KSA, CMRC’s scalable business model will be integral to Amanat’s strategy in building a regional PAC platform.
H.E. Hamad Al Shamsi, Amanat’s Chairman said, “The acquisition of CMRC offers Amanat a profitable and scalable business. Alongside Sukoon, CMRC has enabled us to create the largest PAC platform in the GCC with nearly 500 beds across Abu Dhabi, Al Ain, Jeddah and Dhahran and the potential to increase demand-led capacity further.
“With this transaction, Amanat has fully deployed its paid-up capital of Dh2.5 billion and now manages close to Dh3billion in assets. We continue to deliver on our strategic objectives to invest in high yielding assets that are leading the transformation in the healthcare and education sectors delivering further value to our shareholders.”
Dr. Mohamad Hamade, CEO of Amanat, added, “We have emerged as winners of a competitive bidding process to acquire this high-profile asset in CMRC, which will constitute the cornerstone of Amanat’s PAC platform. It is a genuinely unique and established provider with a leading market position and an experienced management team. In FY-2020, CMRC’s revenues hit a record high of USD 75.3 million, EBITDA of USD 22 million & net income of USD 15.2 million.”
Dr. Howard Podolsky, Group Chief Executive Officer of CMRC added, “Amanat’s investment has come at a pivotal time for us. We have pioneered the successfully roll-out of PAC in the region having established multiple facilities with over 250-beds across the UAE and KSA. Our new strategic investor, Amanat, brings a wealth of experience in accelerating the growth of healthcare businesses in the region. We look forward to the next phase of CMRCs’ journey, where we will be integrating CMRC into Amanat’s existing and potential portfolio of PAC companies.”
Dr. Helmut Schuehsler, Chairman and CEO of TVM Capital Healthcare, commented, “We are delighted to have found in Amanat the perfect buyer for CMRC, one that will take this first-class provider into the next phase of its development. We are extremely proud of the value we at TVM Capital Healthcare created with CMRC for patients, their families, the local healthcare systems in the UAE and Saudi Arabia, and our investors. This deal marks a major milestone, providing us with the momentum and optimism for our future investments across the Middle East and Southeast Asia. We wish CMRC, its management and its team continued success with the support of their new shareholders.”
What this acquisition means for Amanat
- Amanat has fully invested its AED 2.5 billion in paid-up capital and tapped into its debt capacity to optimize its capital structure
- AUMs expanded to nearly AED 3 billion; 53% in healthcare and 47% in education
- Created the largest GCC PAC platform, a specialized sub-sector ripe for public-private partnership growth that will aid governments to diversify their healthcare budgets and optimize their specialized care offering in the region.
- Growth potential through geographic and service diversification with support from a strong and established management team and an asset light business model.
- Attractive market segment with strong market fundamentals conducive to growth, supported by ageing population, increased life expectancy and a significant supply gap in KSA.
“Post-acute care and rehabilitation has proven to be one of the most resilient subsectors during the pandemic and we are now well-positioned to accelerate organic growth and pursue expansion across the GCC. We look forward to working closely with the public sector in the GCC in creating clusters of partnerships to develop healthcare service line integration where post-acute care services and other synergistic services are provided to address market demand through a more systematic relationship that offers long-term cost-effective synergies.” Hamade concluded.