Dubai: UAE-based private health care operator NMC Health made two acquisitions in the Gulf for $207 million (Dh760.31 million) in a bid to expand its capacity and geographic reach, according to a statement released on Monday.

The London-listed company acquired a 70 per cent stake in CosmeSurge and related businesses for $170 million from Emirates Healthcare Group, and an 80 per cent stake in Riyadh-based Al Salam Medical Group for $37 million.

The company said in a bourse filing that the CosmeSurge purchase is expected to deliver 2017 revenues and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of approximately $67 million and $20.5 million respectively, representing a 31 per cent EBITDA margin.

The CosmeSurge deal will be settled in cash and the transaction is expected to be completed during the first quarter of this year while the Al Salam deal is expected to be completed in the first half of the year, the statement said.

The Saudi acquisition is expected to further extend NMC’s foothold in the Kingdom with a 100-bed hospital and two clinics in the Riyadh market, the statement said.

“These value-accretive and earnings-enhancing transactions fit well with our growth strategy. CosmeSurge represents a continuation of building NMC’s capabilities and Al Salam further extends our geographic footprint in the KSA, cementing our leading position as a non-domiciled provider,” said Prasanth Manghat, chief executive officer of NMC.

“We see substantial opportunities for revenue and cost synergies across both acquisitions, and the Cosmetics business in particular has the potential to be further developed into an independent business vertical at a later stage. Moreover, Saudi Arabia remains a key focus market for us and we continue to see strong growth opportunities,” he said.

Moreover, NMC also signed new operations and management contracts with Emirates Healthcare Group to manage its Egyptian hospitals, Dar El Fouad and As Salam International.

The contract is expected to generate revenues of $2 million for NMC in the first year of operation.