Mediclinic Middle East Concludes Agreement with Foundation Holdings for the Collaboration and Transaction of Three Clinics and One Pharmacy
DUBAI, UAE, July 11, 2017/PRNewswire/ –Foundation Holdings is driven by an ambition to provide the next generation of value-based healthcare underpinned by value through targeted cost effective high quality care.
Foundation Holdings has consolidated a transaction to acquire a leading healthcare delivery business, a subset of the Mediclinic Middle East Facilities in Abu Dhabi, Al Ain and Dubai. This consolidated deal currently provides services to approximately 100,000 outpatients annually, with a compliment of more than 50 medical and administrative staff.
Strategic global investment firm Foundation Holdings announced today the formation of a new healthcare platform aiming to accelerate value-based healthcare in the United Arab Emirates. To kick start this initiative, the company has collaborated and transacted a deal with Mediclinic Middle East, one of three operating platforms at Mediclinic International plc, a UK listed international private healthcare group, to acquire three best in class value-care primary clinics, one each in Abu Dhabi, Al Ain and Dubai as well as one pharmacy in Abu Dhabi. The new entity brings together established, value-based healthcare delivery systems with a solid physician infrastructure, together with a proven team of healthcare support and operations staff as well as leading accreditations such as Joint Commission International (JCI) for the Dubai facility.
Mediclinic Middle East is a market leader in the UAE and is driven by its vision to be respected internationally for its best in class practices and the preferred provider locally. It operates six hospitals and more than 26 clinics across the Emirates, with more than 700 inpatient beds.
The reason for their divestment was to enable Mediclinic Middle East to strategically consolidate and focus their resources on their core market segments, which includes acute care hospitals that provide specialist tertiary care and multidisciplinary ambulatory care centres.
Foundation Holdings is focused on building sustainable, industry-defining companies in impactful sectors of healthcare, education and consumer across India and the GCC. In doing so, Foundation Holdings is committed to delivering impact and change through its investments, service delivery and through its job creation. At the heart of Foundation Holdings’ strategy is the intentional focus on impact as a core to its outcomes. By focusing on the delivery of cost-effective healthcare in the UAE, Foundation Holdings aims to promote quality healthcare for the people of the UAE while generating superior returns for its investors.
The transaction was signed on 11 June 2017, in record time of less than seven weeks, with the support of key business advisors – Al Tamimi, DLA Piper, Maples and Calder and KPMG.
High quality, affordable healthcare for a value-conscious audience is the largest segment of the GCC and UAE healthcare sector with more than seven million potential beneficiaries. This investment in value-based healthcare will help meet the ever-increasing demand for quality healthcare in the country. The formula of targeted, smaller healthcare centres/clinics in strategic locations will allow Foundation Holdings’ platform to provide affordable and quality healthcare, accessible to a broader population, including lower-income patients and those living in under-served areas.
“The UAE value healthcare sector has been in our sights for years, however, until we were introduced to Mediclinic, we struggled to find high quality partner companies. Mediclinic‘s assets immediately stood out due to their inherent focus on high quality healthcare services, a strategic expansion plan to address an under-served and fragmented market, and a very capable clinical and administrative team that can successfully execute its plan,“ said Abhishek Sharma, CEO, Foundation Holdings.
The UAE’s healthcare market is estimated at USD 17 billion and is expected to grow at a rate of 11% per annum (source – PWC). Driven by a growing younger population and a favourable government policy, this transaction comes at a critical time for the expanding healthcare sector. Potential growth in Dubai alone, from the implementation of mandatory health insurance is estimated to contribute additional revenue of AED 2 billion per annum to the sector by 2018. The medical centres/clinics are located in areas with a captive patient population and high footfalls; they therefore serve as a one-stop shop with diverse specialisations and revenue streams across outpatient, pharmacy, radiology, and laboratory services.
“Mediclinic‘s core purpose is to enhance the quality of life of our patients by providing comprehensive, high-quality healthcare services. We do this in such a way that the Group is trusted as the most respected provider of healthcare services by patients, doctors and funders of healthcare in each of its markets. Foundation Holdings brings to the table its know-how in building businesses that meet the dual objectives of social impact and profitability. Foundation Holdings has extensive experience and knowledge of the healthcare sector in the GCC. Whilst the facilities in question do not fit well within our strategic framework, we know that they do fit that of Foundation Holdings and will thrive under their leadership. We look forward to working with the team at Foundation Holdings as they operationalise their expansion plans,“ said David Hadley, CEO, Mediclinic Middle East.
In addition to strengthening local capital markets in the UAE, Foundation Holdings is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, helping create conditions to attract increased private capital and helping structure public-private partnerships.
About Foundation Holdings:
Foundation Holdings is a strategic, global investment firm focused on building sustainable, industry defining companies in the impactful sectors of healthcare, education and consumer across India and the GCC.
Foundation Holdings is distinguished by the firm’s emphasis on human capital, innovation and enhancing operational value. The firm’s leadership team is also committed to growing family businesses across both India and the GCC.
Recognised in the industry for an innovative approach to investments – as well as deep experience in the healthcare, education and consumer sectors, Foundation Holdings is committed to transforming businesses into global champions who can compete on the international stage via accelerated, bespoke growth strategies that are specifically tailored to partnership.
Foundation Holdings’ Management Team has led successful IPOs across the New York Stock Exchange, London Stock Exchange, Australian Stock Exchange and the Dubai Financial Market, as well as having led two of the largest IPOs in the region since 2013.
For further information visit http://www.foundationholdings.co
About Mediclinic International plc:
Mediclinic is an international private healthcare group with operating platforms in Southern Africa (South Africa and Namibia), Switzerland and the United Arab Emirates. Its core purpose is to enhance the quality of life of patients by providing acute care, specialist-orientated, multi-disciplinary healthcare services. Mediclinic also holds a 29.9% interest in Spire Healthcare Group plc, a LSE listed and UK-based private healthcare group.
Mediclinic comprises 74 hospitals and 32 clinics. Mediclinic Southern Africa operates 49 hospitals and two day clinics throughout South Africa and three hospitals in Namibia with more than 8000 inpatient beds in total; Hirslanden operates 16 private acute care facilities and four clinics in Switzerland with more than 1600 inpatient beds; and Mediclinic Middle East operates six hospitals and 26 clinics with more than 700 inpatient beds in the United Arab Emirates.
The platforms’ contributions to Group revenue for the financial year ended 31 March 2017 were 48% by Hirslanden, 28% by Mediclinic Southern Africa and 24% by Mediclinic Middle East.
During February 2016, the combination of the Company (previously named Al Noor Hospitals Group plc), with operations mainly in Abu Dhabi in the United Arab Emirates, and Mediclinic International Limited was completed. Mediclinic International Limited was a South African based international private healthcare group founded in 1983 and listed on the JSE, the South African stock exchange, since 1986, with operations in South Africa, Namibia, Switzerland and the United Arab Emirates (mainly in Dubai). The combination resulted in the renaming of the enlarged group to Mediclinic International plc.
Mediclinic has a primary listing on the Main Market of the LSE, with secondary listings on the JSE in South Africa and the NSX in Namibia.
For further information visit http://www.mediclinic.com/
Source: MediClinic Middle East