Dubai: Amanat, which specialises in healthcare and education assets, has acquired in full UAE-based Cambridge Medical and Rehabilitation Center for an enterprise value of Dh851 million from TVM Capital Healthcare, the private equity firm. It was funded through a combination of cash and leverage.
This is Amanat’s first wholly-owned investment in the healthcare sector in the UAE - and also "one of the biggest GCC healthcare deals in recent years".
“The acquisition of CMRC offers Amanat a profitable and scalable business," said Hamad Al Shamsi, Amanat’s Chairman. "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."
Cambridge Medical operates more than 250 beds across three facilities, two in the UAE, and one in Saudi Arabia. Alongside Sukoon, an Amanat portfolio company and a major long-term care provider in Saudi Arabia, Cambridge's "scalable business model will be integral to Amanat’s strategy in building a regional PAC platform".
“With this transaction, Amanat has fully deployed its paid-up capital of Dh2.5 billion and now manages close to Dh3 billion in assets," the Chairman added. "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.”
The 'replacement cost' refers to the cost that would be incurred to replace an essential asset at current market prices.
According to Dr. Mohamad Hamade, CEO of Amanat, “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 (post-acute care and rehabilitation) platform."