Waha Capital completes sale of stake in UAE diagnostics business to Al Borg Medical Laboratories
Abu Dhabi-based investment company Waha Capital, through its UAE healthcare subsidiary, Anglo Arabian Healthcare (AAH), has completed the sale of its full equity stake in Proficiency Healthcare Diagnostics (PHD) to Al Borg Medical Laboratories.
The transaction, which was previously announced on 21 May 2017, involves an equity sale price of approximately AED 184 million for 100 per cent of PHD, with the net impact on Waha Capital being an accounting gain of approximately AED 94 million which will be recorded in the company’s Q4 2017 financial statements.
AAH acquired a 70 per cent stake in PHD in April 2013 and has since increased its stake in the business to 93 per cent. During the holding period, PHD solidified its position as a leading independent diagnostic services provider in the UAE. The company has expanded its footprint since AAH’s acquisition by adding new branches in Al Ain, Dubai and the Western Region, which led to a more than doubling of revenues and earnings since 2013.
“Waha Capital entered PHD at a key stage in the company’s growth trajectory, supporting the business in achieving impressive scale. The transaction crystalizes significant value creation achieved by Waha Capital and AAH. We look forward to delivering more success under AAH as we continue to expand the group’s scale in the premium and affordable care segments,” said Salem Rashid Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital.
Anglo Arabian Healthcare, which is a seed asset in Waha Capital’s private equity business, operates multiple healthcare platforms with 35 healthcare assets across Abu Dhabi, Dubai, Sharjah, Ajman and Ras Al Khaimah.
“The two companies are leaders in their respective markets and the combined company in the UAE, with a network of 12 laboratories, will be a clear market leader in the private independent laboratory space. Such a combination will allow Al Borg and PHD to benefit from synergies and greater scale, thereby allowing us to accelerate our growth plans across the Middle East,” said Dr. Fawaz Al Bishri, Chairman of Al Borg Medical Laboratories.
Al Borg Medical Laboratories offers a wide range of routine and specialty tests to individuals, hospitals, clinics, insurance companies and corporates. As of December 2016, the company had 52 laboratories, 1,150 personnel, and conducted over 7.5 million tests across eight countries in the GCC and