Sensitive customer data remained secure and initial assessment showed 'no widespread compromise', the top Indian insurer said
asia2 hours ago
NMC Health (NMC), the debt-ridden hospital group founded by BR Shetty, has entered into an agreement to sell its Spanish subsidiary Eugin Group for a total enterprise value of $525 million.
The sale of the Spain-based fertility business to European private hospital operator Fresenius Helios, consists of Luarmia and Boston IVF Ventures. The transaction is expected to complete by the end of 2021 first-half.
Eugin Group was acquired by NMC in 2015 for an enterprise value of $161.23 million. The deal was announced close on the heels of the sale of the money remittance firm Finablr, also founded by Shetty, to a UAE-Israeli consortium for $1.
The Spanish subsidiary also has operations in Italy, Portugal, Sweden, Brazil and Columbia.
In a statement, NMC said the transaction is in line with its three-year business plan, which included a renewed focus on driving growth in its core markets in the Middle East. The hospital operator said it is committed to seeking exits on commercial terms from international activities that are not considered to be core operations.
“This transaction represents a strategic milestone in the delivery of the business plan.”
Michael Davis, CEO of NMC Healthcare, said the sale process was highly competitive, which is a testament to the strength of Eugin Group’s offer through Luarmia and Boston IVF.
“We are delighted to have sold to such an established, international healthcare company in Fresenius Helios.
“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,” he said.
Richard Fleming, managing director of Alvarez & Marsal Europe LLP and joint administrator of NMC and NMC Healthcare, said the transaction marks another important step towards a successful restructuring for NMC. “Eugin Group is a high-quality, highly sought-after business, with an experienced management team and, following a robust process, we are pleased to have reached an agreement for its sale. The underlying business and financial performance of NMC Healthcare is strong and it continues to be a key operator in the UAE’s healthcare market. We are optimistic about the future of NMC as we head into 2021.”
Administrators from Alvarez & Marsal were appointed in April to oversee NMC Health, which was ravaged by $6.6 billion debt amid scandals of fraud and siphoning. Luarmia, which comprises approximately 40 clinics and sites across Europe and Latin America, is a key player in-vitro fertilization (IVF) services, performing over 25,000 cycles annually.
Boston IVF, with 25 clinics and sites, is an essential player in the US for IVF services’, performing over 10,000 cycles annually. Boston IVF was acquired by NMC in 2018 and has grown significantly across the US over the past two years. On a combined basis, Luarmia and Boston IVF generated approximately $195 million of revenues in 2019.
-- issacjohn@khaleejtimes.com
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