Will Abu Dhabi hospital giant PureHealth land its second European deal?

Dubai: Abu Dhabi healthcare group PureHealth is out to nail its second back-to-back deal for a leading European hospital operator – this time for Portugal-based Luz Saude.

The latter operates 20 hospitals Portugal and Madeira, and any deal would help PureHealth expand in Europe after it bought a majority stake in Hellenic Healthcare Group, which has its hospital facilities in Greece and Cyprus.     

“If the Luz Saude deal happens, that’s going to a good fit for PureHealth as it has made no secrets about wanting a major global presence,” said an analyst. (Luz Saude is owned by Fidelidade, itself owned by China’s Fosun and Caixa Geral de Depositos. The possible deal involving PureHealth was first announced by Bloomberg.)

Will the Portugal deal happen?

Healthcare industry sources say that PureHealth has always been finicky about valuations and by extension, the price it is willing to pay for any acquisition.

“PureHealth has been extremely selective – at no point does it want rush into a deal,” said the analyst. “We have seen this discipline whenever PureHealth has scouted for hospital buys within the UAE and overseas.”

US, UK deals add up

In Q1-2025, PureHealth’s revenues spiked 7.6% to Dh6.58 billion, and along with its UAE assets, the company’s recent buys of healthcare operators in the US and UK also added to the total. The net profit for the period came to Dh505 million.

It’s all about the ‘right price’

PureHealth has so far not issued any update on its Luz Saude deal plans, but analysts tracking the company reiterate that everything would hinge on the price.

“When a deal valuation was not seen as ‘fair’, PureHealth has walked away,” said an analyst who has built a fair exposure in the ADX-listed stock. “Expansion is important, but PureHealth’s strategy has been on the ‘right’ shareholder returns. With no fair valuation, PureHealth will not go ahead. That’s for sure.”

More to follow...