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Amanat acquires CMRC for $232 million

Amanat Holdings has announced the full acquisition of Cambridge Medical and Rehabilitation Center (CMRC) for an enterprise value of $232 million (Dh851 million) from TVM Capital Healthcare, an emerging market focused private equity firm.

The transaction was funded through a combination of cash on hand and leverage. The transaction marks Amanat’s first wholly owned investment in the healthcare sector in the UAE and one of the biggest GCC healthcare deals in recent years.

CMRC is a leading post-acute care and rehabilitation (PAC) provider in the UAE and KSA. Since inception, CMRC has grown to more than 250 beds across three facilities, two in the UAE, and one in the KSA. Alongside Sukoon, Amanat’s portfolio company and a major long-term care provider in KSA, CMRC’s scalable business model will be integral to Amanat’s strategy in building a regional PAC platform.

Hamad Al Shamsi, Amanat’s chairman, said: “The acquisition of CMRC offers Amanat a profitable and scalable business. 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."

“With this transaction, Amanat has fully deployed its paid-up capital of Dh2.5 billion and now manages close to Dh3 billion in assets. 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,” he said.

Dr. Mohamad Hamade, CEO of Amanat, added: “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 platform. It is a genuinely unique and established provider with a leading market position and an experienced management team. In FY-2020, CMRC’s revenues hit a record high of $75.3 million, EBITDA of $22 million and net income of $15.2 million.”

Dr. Howard Podolsky, group chief executive officer of CMRC, added: “Amanat’s investment has come at a pivotal time for us. We have pioneered the successfully roll-out of PAC in the region having established multiple facilities with over 250-beds across the UAE and KSA. Our new strategic investor, Amanat, brings a wealth of experience in accelerating the growth of healthcare businesses in the region. We look forward to the next phase of CMRCs’ journey, where we will be integrating CMRC into Amanat’s existing and potential portfolio of PAC companies.”

Dr. Helmut Schuehsler, chairman and CEO of TVM Capital Healthcare, added: “We are delighted to have found in Amanat the perfect buyer for CMRC, one that will take this first-class provider into the next phase of its development. We are extremely proud of the value we at TVM Capital Healthcare created with CMRC for patients, their families, the local healthcare systems in the UAE and Saudi Arabia, and our investors. This deal marks a major milestone, providing us with the momentum and optimism for our future investments across the Middle East and Southeast Asia. We wish CMRC, its management and its team continued success with the support of their new shareholders.”

business@khaleejtimes.com