Abu Dhabi-based NMC Health, a leading integrated private healthcare provider, has reached an agreement with Gulf Medical Projects Company (GMPC) to acquire Al Zahra Hospital in Sharjah for Dh2.06 billion ($560 million).

One of the largest private hospitals in the emirates, Al Zahra operates 137 active inpatient beds, serving approximately 400,000 outpatients and 23,000 inpatient bed days per year.

It provides services of an international standard, supported by hitech facilities including cutting edge radiology and laboratory practices, as well as seven operating theatres, recovery room beds, more than 80 individual clinics, a maternity complex and emergency room beds, including triage.

Subject to shareholder approval, the acquisition is a strategic step forward for NMC Health and will reinforce the company’s position as a leading provider of healthcare services in the UAE private sector, said a statement from the UAE healthcare group.

Al Zahra Hospital will complement the group’s existing network of seven out-patient medical centres in Sharjah, it stated.    

Al Zahra has demonstrated a strong track record of growth and for the year ended December 2015 achieved revenues of $130.4 million, and net profit of $38.8 million respectively.

NMC said it has identified Dh23.7 million ($6.5 million) of annual cost synergy benefits expected to be derived from the acquisition from the second year post completion onwards.

Commenting on the move, CEO Dr BR Shetty said: "Our expansion into the Sharjah healthcare market represents another major advance towards our objective of developing a leading integrated private healthcare operator in the UAE."

"We remain committed to further develop the local healthcare market by offering best in class services and facilities to our patients," stated Shetty.

"The acquisition of Al Zahra Hospital is fully in line with our strategy and demonstrates our focus on delivering long-term growth of our strategic and competitive capabilities to expand sustainable shareholder returns," he added.

Prasanth Manghat, the deputy chief executive officer of NMC, said the acquisition of Al Zahra Hospital, one of the leading and most reputable hospitals in the UAE, carries tremendous strategic significance for NMC and expands the group’s reach within the region.

In view of its size, the acquisition requires the approval of the company’s shareholders at a general meeting which is taking place in London on December 29, said Manghat.

"As part of the financing of the acquisition, the company is undertaking a placing of up to 9.99 per cent of the issued share capital of the company, as separately announced, and has also put in place new debt facilities," he added.-TradeArabia News Service