UAE’s Amanat Buys Cambridge Medical in $232 Million Deal

(Bloomberg) -- United Arab Emirates-based Amanat Holdings PJSC, which invests in health care and education, has acquired a local rehabilitation firm for an enterprise value of $232 million, underlining the robust demand for specialist medical services in the Gulf region.

Amanat said it bought Cambridge Medical and Rehabilitation Center following a bidding process through a combination of cash and debt from TVM Capital Healthcare, a private equity firm focused on emerging markets.

Amanat's shares rose as much as 2.6%, the most since Jan. 21. The stock pared gains and traded 2.2% higher as of 12:17 p.m. local time, the third-biggest increase among 37 members of the DFM General Index, which was up 0.1%.

Cambridge Medical and Rehabilitation Center is a post-acute care and rehabilitation provider, with more than 250 beds across three facilities -- two in the UAE and one in Saudi Arabia. It reported revenue of $75.3 million and net income of $15.2 million for 2020.

Aging populations and rising life expectancy have boosted demand for health care in the region. NMC Health Plc has attracted considerable interest for its UAE and Oman hospitals, while Saudi Arabia's largest provider of dental care is considering a range of strategic options including a sale.

“Post-acute care and rehabilitation has proven to be one of the most resilient subsectors during the pandemic,” said Mohamad Hamade, CEO of Amanat. With the acquisition and another business it already owns, Amanat expects to build the region's biggest provider of post-acute care and rehabilitation services.

With this transaction, Amanat has fully deployed the 2.5 billion dirhams ($680.6 million) it received from investors since it was listed in Dubai in 2014. TVM Capital Healthcare was advised by deNovo Corporate Advisors, a spokesman for the Dubai-based boutique bank said.

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