Egypt: Actis portfolio company set to acquire healthcare group
Cleopatra Hospital Group (CHG), one of private equity investor Actis’ current portfolio companies, has entered into a sale and purchase agreement to acquire 100% of Alameda Healthcare Group’s assets in Egypt and the operational merger of hospitals and medical units subject to certain conditions and regulatory approvals. Alameda, a UAE company, owns and operates a number of hospitals and medical units in Egypt. The transaction is expected to close in the first six months of 2021.
Commenting on the transaction, Alameda chairman and controlling shareholder Dr. Fahad Khater said, “We are excited about the prospect of these two leading healthcare groups joining forces. The combined group will be home to professionals who are 100% committed to delivering high-quality healthcare and patient outcomes. Together, we will not just better serve our traditional patient base but will also improve the overall quality of healthcare in Egypt by creating a robust platform through which we can further support the Ministry of Health and Population in its Universal Healthcare programme, its fight against the Covid-19 pandemic, and its other initiatives.”
CHG chief executive officer, Dr. Ahmed Ezzeldin added, “This transaction will allow us to provide medical care and services of the highest quality, setting the standard for healthcare providers across the country while delivering further efficiency and performance improvements for all our stakeholders. This is a transformational acquisition for CHG that will add three sizeable operating hospitals to our family while more than doubling the EBITDA of CHG post-closing. This will significantly increase the Group’s bed capacity and allow CHG to enhance quality and value of care for all our patients. We are also excited that the combined group will allow us to invest in and introduce new therapies and services needed in Egypt while continuing to scale up our bed capacity in future projects across the country. I am delighted to have the opportunity to lead the combined business, and I am looking forward to this exciting new chapter in our corporate development story.”
Dr. Sherif Elkholy, board member of CHG and Actis partner, added: “Since Actis became involved with CHG in 2019, we have been very impressed with the operational excellence and financial performance of the group. As such, we have been strong supporters of management’s organic and inorganic growth initiatives. This transaction is a transformative one for CHG as a business and for the private healthcare sector in Egypt as a whole. The combined business will be a formidable player, able to significantly raise the bar in terms of both quality standards and breadth and depth of service offering. We are proud to be partners in the creation of this national champion that will benefit all stakeholders, and we look forward to the continued success of the Group under the leadership of Dr. Ahmed Ezzeldin and his team.”
EFG Hermes is acting as financial advisor while Freshfields Bruckhaus Deringer and Zulficar & Partners are acting as legal counsels to CHG. White & Case and Matouk Bassiouny & Hennawy, ALC Alieldean, Weshahi & Partners and Dechert LLP are acting as legal counsel to Alameda Healthcare Group and CI Capital is acting as their financial advisors.
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