December 2016 Didn’t Deliver a Year-End Boost

by | Jan 13, 2017 4:37 pm | Behavioral Health Care, Biotechnology, eHealth, Home Health & Hospice, Hospitals, Laboratories, MRI & Dialysis, Medical Devices, Pharmaceuticals, Physician Medical Groups, Private Equity, Rehabilitation | 0 comments

The final month of the fourth quarter is typically a busy one for deal makers in all industries. Last year, some health care deal makers apparently got a rest. Deal volume in December 2016 was an anemic 119 transactions, compared with 131 deals in November and 148 in December 2015. The Services sectors accounted for 55% of the deals in December, which is on the low side. Consider that, in November, Services accounted for 69% of the month’s transactions, and even 70% of the total in December 2015. Spending on those deals reached $15.4 billion, a relatively modest amount until it is compared with November’s $8.7 billion total (+78%) and December 2015’s $12.3 billion total (+26%). Suddenly,... Read More »

The Hospital Market in the UAE Heats Up

by | Dec 16, 2016 9:44 pm | Hospitals | 0 comments

Healthcare deals, particularly for hospitals, are heating up in the United Arab Emirates. On December 14, NMC Health, the country’s largest private healthcare company, announced its acquisition of Al Zahra Hospital in Sharja. Al Zahra is one of the largest private hospitals in the UAE, operating 137 active inpatient beds. It serves approximately 400,000 outpatients and 23,000 inpatient bed days per year. Its owner, Gulf Medical Projects Company, agreed to a purchase price of Dhiram2.1 billion, or approximately $571.7 million. That works out to nearly $4.2 million per bed, but if the claim that the hospital had $130 million in revenue in 2015, the revenue multiple of 4.4x... Read More »
Hospital M&A Dropped in Q4:15

Hospital M&A Dropped in Q4:15

by | Jan 27, 2016 8:30 am | Hospitals | 0 comments

The hospital acquisition market declined in the fourth quarter of 2015, falling 31% from the third quarter’s total of 32 deals. The 22 publicly announced hospital acquisitions in Q4:15 were also 29% lower than the 31 deals announced in the same quarter in 2014. The largest acquisition in the fourth quarter to come with a disclosed price was the acquisition of Al Noor Hospitals Group plc, based in Abu Dhabi, United Arab Emirates, by the South African hospital operator Mediclinic International Ltd. for $2.3 billion. Al Noor Hospitals Group provides primary, secondary and tertiary care services through its hospitals and medical centers in the UAE. Mediclinic International operates... Read More »

Foreign Hospital Deals Keep Coming

by | Nov 2, 2015 8:56 am | Healthcare Market Updates | 0 comments

Hospital mergers and acquisitions are interesting to a local media audience, we know. But the foreign deals that are announced should be of interest to global investors. We reported the $2.3 billion Al Noor Hospitals Group plc (LSE: AHN) acquisition in Abu Dhabi by South Africa’s Mediclinic International Ltd. two weeks ago. Now there’s Max Healthcare’s 51% stake in an adjacent hospital in New Delhi, India, for an undisclosed price. Smart Health City Pte Ltd., part of the Singapore-based BK Modi Group, sold the majority interest in its Saket City Hospital Private Limited (230 beds, in the process of expanding to 300 beds) to Max Healthcare, which owns the Max Super... Read More »

Major Mideast Hospital Matchup

by | Oct 19, 2015 8:58 am | Hospitals | 0 comments

The largest deal announced last week created the largest private healthcare provider in the United Arab Emirates, which may be why you didn’t hear much about it. The South African private hospital company Mediclinic International Ltd. (OTCQB: MCFFY) won the approval of the board of Al Noor Hospitals Group plc, based in Abu Dhabi, UAE, in a deal valued at $2.3 billion. Al Noor, which provides primary, secondary and tertiary care services through its portfolio of hospitals and medical centers in the UAE, spurned the advances of a crosstown rival NMC Health plc, and went with Mediclinic. Mediclinic shareholders will own a majority stake (84% to 93%) in the combined company, which will... Read More »