CDC signs $100m investment in healthcare company
CDC Group, the UK’s development finance institution and impact investor, has today announced a $100 million minority equity investment in Alfa Medical Group (AMG) alongside healthcare investor Africa Platform Capital, the family office of Simon Rowlands, a leading sector expert with a strong track record in healthcare and former co-founder of the global private equity firm, Cinven, where he led the healthcare team.
AMG is one of the largest healthcare providers in Egypt and consists of 140-plus medical labs and six radiology centres, as well as a 170-bed hospital, with two further hospitals and the Alfa Medical City under construction. The group traces its roots to the El-Safa hospital founded in 1977 by the late Prof. Samir Talaat, followed by Alfa Scan and Alfa Laboratories established over 25 years ago.
CDC’s investment will enable AMG to improve its medical health services outcomes, increase public access to medical care and broaden its hospital footprint which will include the new Alfa Medical City. The investment will also support the expansion of the AMG laboratory business particularly into underserved regions across Egypt, as well as the growth of Alfa Scan radiology centres.
In addition, the transaction will finance the establishment of the Alfa Academy, a training academy for AMG employees and third-party healthcare staff. The academy will provide training to healthcare professionals, developing permanent high-quality talents across the sector and improving patient care.
Dr Adel Talaat, chairman and CEO of Alfa Medical Group, said: “We are honoured to welcome CDC, one of the largest development finance institutions, as shareholders in Alfa Medical Group. The investment marks an important milestone for our group and will allow us to expand our business and accelerate our growth. It also shows the confidence that foreign investors have in the Egyptian economy and healthcare sector.
Sherine Shohdy, coverage director, CDC Egypt commented, “Alfa Medical Group has played a key role over 25 years in improving the lives of millions of Egyptians by granting access to quality healthcare. Its brands are recognised in the medical sector for providing high calibre diagnostics and care using cutting edge technologies. This investment is testament to CDC’s commitment to partner with leading Egyptian businesses, providing much needed patient capital that only our model can offer. With over 20 years’ experience investing here in Egypt, we remain ambitious about partnering with more local companies this year.”
Leandro Cuccioli, head of health and consumer businesses, CDC commented, “CDC is excited to partner with Dr Adel Talaat and his team to continue the expansion of the group in the country and broadening access to healthcare. We are particularly excited to co-found Alfa Academy, set up to train and upskill more local employees and support the broader healthcare sector. This investment is a key part of CDC’s strategy in Egypt and we look forward to supporting more businesses in the healthcare, education and other consumer driven sectors.”
Compass Capital acted as the sole financial advisor on the transaction representing AMG Group with Al Kamel Law Office and Serry Law Office acting as legal counsel to AMG.
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