Abu Dhabi's NMC sells its Spanish, US IVF-care business for 430m euros
NMC will be shedding all non-core assets and refocus on being a UAE healthcare business
Dubai: Abu Dhabi's NMC Health has divested its speciality IVF-care business Eugin Group for 430 million euros, thus generating a fairly sizeable intake of funds that will help immensely in the coming months. The transaction with Fresenius Helios is expected to complete by the end of first-half 2021.
NMC, now under court-ordered administration, has been disposing all non-core/strategic assets and rebuilding itself to be a UAE focussed hospital and clinic operator. "This transaction represents an important strategic milestone in the delivery of the business plan," the company said in a statement.
The sale of Eugin Group - which is made up by Luarmia S.L. and Boston IVF Ventures - is a "positive step" and the "level of interest" shows the quality of the asset and the continued strength of NMC Healthcare’s underlying businesses," the company said in a statement.
In August, NMC Healthcare set out a three-year business plan, which included a renewed focus on driving growth in its core markets in the Middle East. This transaction represents an important strategic milestone in the delivery of the business plan.
Extensive network
Luarmia, which has nearly 40 clinics and sites across Europe and Latin America, is in-vitro fertilization (IVF) services, performing over 25,000 cycles annually. It was acquired by NMC in 2015 and since then opened and acquired clinics in Brazil, Argentina, Sweden, Italy and Denmark.
Boston IVF, which comprises approximately 25 clinics and sites, is a leader in the US for IVF services. Boston IVF was acquired by NMC in 2018. On a combined basis, Luarmia and Boston IVF generated approximately €160m of revenues in 2019.
Michael Davis, CEO of NMC Healthcare, said in a statement: "The sale process was highly competitive, which is testament to the strength of Eugin Group’s offer through Luarmia and Boston IVF. 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."