Abu Dhabi-based private equity firm Gulf Capital sold Metamed, one of the region's biggest medical services companies, to Ray Lab, a company owned by a consortium of international investors.
Mediterrania Capital Partners, a private equity firm that is part of the consortium that owns Ray Lab, said the deal value exceeds €100 million (Dh407.9m). The transaction includes “a capital injection to accelerate the execution of the business plan”, Mediterrania Capital said in a separate statement.
Gulf Capital invests in several asset classes including private equity, private debt and real estate, manages more than Dh11 billion in assets across eight funds and investment vehicles.
Metamed was founded by Gulf Capital Private Equity Partners Fund II in 2009 as Technogroup Investments Holdings to invest in diagnostic imaging and related radiology services firms. It operates diagnostic imaging centres in Egypt, Jordan and Saudi Arabia.
“This investment is another example of how Gulf Capital adds value and transforms local players into regional leaders,” Karim El Solh, chief executive of Gulf Capital, said in a statement on Wednesday.
In addition to Mediterrania Capital, the consortium of buyers includes Cairo Scan for Radiology and Labs and a number of European Development Financial Institutions including Deutsche Investitions-und Entwicklungsgesellschaft and Dutch Financierings-Maatschappij voor Ontwikkelingslanden.
“Metamed is a highly successful company, well-positioned to fulfil the increasing demand for private medical services in the Mena region,” Albert Alsina, founder and chief executive at Mediterrania Capital, said.
“The combination of Metamed and Cairo Scan will create one of the largest diagnostics imaging platforms in emerging markets, and we are excited by the growth potential of this new combined organisation.”
Mediterrania Capital Partners took a stake in Cairo Scan in 2018, which provides medical imaging services and diagnostics in Egypt.
HC Securities & Investments, Gibson Dunn & Crutcher and Matouk Bassiouny advised Gulf Capital on the deal, while law firm Zaki Hashem and Partners advised Ray Lab, Mediterrania Capital Partners and Cairo Scan.
Gulf Capital said Metamed grew the number of diagnostic centres three-fold, from 10 to 30 across the Mena region, while under its ownership. Metamed’s services were also expanded to include related healthcare, such as clinical and anatomical pathology, nuclear medicine services and women's healthcare, it said.
The company is looking to diversify its portfolio as it looks to exit mature assets and snap up new investments. Earlier this year, it acquired IVI-RMA Middle East, a fertility treatment services provider in the GCC, for $100m (Dh367m).
Mediterrania Capital is a private equity firm that invests in small and medium enterprises and mid-cap companies in Africa. The firm, with annual revenue of €1.5bn, has offices in Abidjan, Algiers, Barcelona, Cairo, Casablanca and Valletta.