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The growing trend of healthcare M&A at home has not abated, with three separate acquisitions of healthcare facilities and companies announced this week as one of the region’s largest healthcare conferences — Arab Health — gathers regional and global healthcare players in Dubai.
TLDR: Saudi-backed Abdul Latif Jameel Health acquired a majority stake in Genpharm; PureHealth bought out Mayo Clinic’s stake in a major Abu Dhabi hospital; and Dubai Investments has snapped up a stake in a fertility chain.
#1-Abdul Latif Jameel Health buys 70% of Dubai-based Genpharm: Saudi Arabia’s Abdul Latif Jameel ’s Dubai-based health solutions company Abdul Latif Jameel Health acquired a 70% stake in rare disease market access company Genpharm, CEO of Abdul Latif Jameel Health Akram Bouchenaki told Asharq Business (watch: runtime, 11:32) at Arab Health 2024, without disclosing the value of the acquisition.
The healthcare firm is eyeing more acquisitions in the Gulf and the Middle East, as well as Africa and Southeast Asia, with a targeted approach towards identifying potential high-growth companies, according to Bouchenaki.
Genpharm’s leadership remains broadly unchanged post-acquisition, with Karim Smaira as CEO, Kamel Ghammachi as chairman, and Bouchenaki in a new role on the board, the company said in a press release.
#2- PureHealth’s Seha acquires remaining 25% stake in Sheikh Shakhbout Medical City: Recently-listed PureHealth subsidiary Abu Dhabi Health Services Company (Seha) purchased Minnesota-based Mayo Clinic’s 25% stake (25 mn shares) in Abu Dhabi hospital Sheikh Shakhbout Medical City for USD 150 mn (c. AED 551 mn), according to an ADX disclosure (pdf).
Background: Mayo Clinic became a shareholder in the hospital after establishing a JV with Seha in 2019 to launch and operate the 741-bed hospital, which is one of the UAE’s largest for serious and complex medical conditions.
This is PureHealth’s second acquisition in 2024,coming on the heels of its USD 1.2 bn acquisition of UK-based Circle Health Group as part of its global expansion program.
ICYMI- PureHealth went public on the ADX in December in what was the second-largest IPO in the UAE in 2023, valued at AED 36.2 bn.
#3- Dubai Investments buys into Global Fertility: DFM-listed Dubai Investments acquired a 34.3% stake in fertility and reproductive genetics clinic chain Global Fertility Partners (GFP), according to a DFM disclosure (pdf). Saudi and Emirati institutional investors also participated with equity financing, the statement said, without clarifying how much they invested. Dubai Investments declined to comment when Enterprise UAE reached out yesterday.
What we don’t know: The value and timing of the equity financing round are unclear, though we know that Global Fertility Network had raised USD 60 mn in funding in 2022, Forbes Middle East reported earlier.
The funds will help GFP expand in Saudi Arabia and the UAE, with its flagship facility in Riyadh currently under construction and slated to open later this year, according to the statement. The fertility healthcare chain will also kick off construction on fertility and women’s health centers and satellite clinics in the UAE and Saudi Arabia in the coming months, the statement added.
Dubai Investments is ramping up healthcare investments: The latest addition to Dubai Investments’ portfolio marks its fourth acquisition in the healthcare sector, the firm said in its statement. The firm’s healthcare portfolio includes stakes in Dubai’s Clemenceau Medical Centre (CMC) and Kings College Hospital London. Dubai Investments also acquired pharma manufacturer Globalpharma in 2019.
Advisors: King & Spalding acted as legal advisor to GFP, while Dubai-based financial advisor CH Stirling acted as equity advisor.
REMEMBER- Dubai Investments is planning to raise USD 100 mn for its Shariah-compliant Real Estate Investment Trust to fund acquisitions of a hospital and school, we reported earlier. The investment firm will divest its stakes in four companies through private sales, with two transactions set to take place in four to six months, to raise the funds.
