Abu Dhabi, 15 June 2015
TVM Capital Healthcare Partners, the specialist private equity company investing in the Middle East, North Africa and India, has conducted the first exit by its TVM Healthcare MENA I fund, divesting ProVita International Medical Center to NMC Health plc (LSE:NMC), for a consideration of US$ 160.6 million. NMC Health has entered into an agreement to acquire 100% of the issued share capital of ProVita, the leading provider of long-term medical care in the UAE, for an equity consideration of US$160.6 million to be paid in cash, from TVM Capital Healthcare Partners, the Olayan Group, Al Zarooni Emirates Investment and other minority shareholders. This acquisition is due to be completed by Q3 2015.
TVM Capital Healthcare Partners makes growth capital and buyout investments, implementing a strategy to create significant local economic and societal value by applying international best practice clinical and managerial expertise. The firm invested in ProVita in early 2010 after identifying an unmet need for specialist long-term care in the United Arab Emirates and after the initial 18 months of preparatory work and collaboration with its founder Christina Shawky-Boehme. Shawky-Boehme established a similar business in Germany in 1995 and was the first to bring her international care model to Abu Dhabi. Continuing the total dedication to patient-centric care, TVM Capital Healthcare Partners developed ProVita into a world-class provider in the UAE, with facilities in Abu Dhabi and Al Ain, employing close to 400 doctors, therapists and nurses.
Dr. Helmut Schuehsler, Chairman and CEO of TVM Capital Healthcare Partners, and Chairman of ProVita, commented: “Our investment in ProVita has closed an important gap in the UAE’s healthcare infrastructure and was the first of its kind in the Middle East. The excellent work of the center’s talented management team, physicians, therapists and nurses has made a true difference to the quality of life of our patients and the social fabric of the community. NMC Health is the country’s largest private hospital chain and has been in operation within the UAE since 1975. This acquisition marks a significant milestone in ProVita’s development, enabling the company to become part of an esteemed organization with a deep rooted history in providing quality, patient-centered care in the UAE.”
Residents at ProVita depend on artificial ventilation, typically because of accidents, strokes, or birth conditions. Many are children who were previously either being treated abroad, or occupied scarce intensive care unit (ICU) beds in UAE hospitals. In late 2012, ProVita became the first long-term care provider outside the United States to achieve endorsement from Joint Commission International, a non-profit international healthcare accreditation organisation. NMC Health operates 18 facilities across the UAE and one in Spain, three of which are JCI-accredited specialty hospitals. With the addition of ProVita, those numbers rise to 21 facilities and four JCI-accredited specialty hospitals.
Michael Davis, who has 25 years of critical care and long-term care experience, including senior roles in large hospital systems in the United States, will continue in his role as Chief Executive Officer. He comments: “ProVita allows residents to remain close to their families, in a home-like environment that provides the best care available anywhere in the world. This devotion to helping each resident reach their maximum potential lies behind the center’s success, and ensures ProVita and its residents will thrive in the coming years.”
Youssef Haidar, Partner and Managing Director of TVM Capital Healthcare Partners and a member of the ProVita Board, said: “It is a proud day for us to see through our first investment in the Middle East region through a very successful trade sale. We view this as an excellent validation of our incubation investment model.”
ProVita will retain close relationships with two of TVM Capital Healthcare Partners’ other portfolio companies — long-term care and rehabilitation provider Cambridge Medical & Rehabilitation Center and home health care provider Manzil Health Care Service. Cooperation agreements between the three providers allow residents to make the natural move through the network, and to benefit from the same excellence in care provision, as their health conditions improve. TVM Capital Healthcare Partners has forged alliances with U.S.-based strategic partners to deliver internationally recognized excellence in specialist patient care at its companies to ensure a consistent level of excellence in medical, clinical and rehabilitative care throughout its portfolio. These include Spaulding Rehabilitation Network, a Harvard Medical School teaching hospital, and Joslin Diabetes Center, a non-profit institution affiliated with Harvard Medical School which is a world leader in diabetes research, clinical care and education.
As the first specialist healthcare investor in the region, TVM Capital Healthcare Partners has led investments of close to US$110 million in five companies in the field of long-term care, rehabilitation, home care, fertility treatment and medical devices.
The company is a member of TVM Capital Group, an affiliation of globally acting venture capital and private equity firms with an operating track record of 30 years. TVM Capital Healthcare Partners sets itself apart in the region not only because it has a deep understanding of the local healthcare industry’s challenges, but also because of the strength of the company’s strategic partnerships with clinical and rehabilitative experts from around the world.
TVM Capital Healthcare Partners was established in the UAE in 2009 targeting the growing investment opportunity in private sector healthcare across the Middle East and North Africa (MENA).
The transaction was internally managed by TVM Operating Partner and Managing Director Corporate Finance, Chad Floe, supported by a team from TVM Operations Group. Morgan, Lewis & Bockius LLP, Dubai, represented the firm’s interests in this transaction.
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About TVM Capital Healthcare Partners
TVM Capital Healthcare Partners was established in 2009 under the name TVM Capital MENA and has since then been led by Chairman & CEO, Dr. Helmut M. Schuehsler. The firm is focusing on making highly specialized growth capital and small buyout investments in healthcare companies in the Middle East and North Africa (MENA) region and India that are or target to become leaders in their regional markets. The company is a member of TVM Capital Group, an affiliation of globally acting venture capital and private equity firms with an operating track record of 30 years.
The firm has assembled a strong team of investment professionals who are supported by a group of healthcare operators as executives-in-residence in its accelerator company, TVM Operations Group, and TVM Healthcare Advisors, which provides healthcare focused research and advisory services. Collectively, this team has developed an ability to conceptualize and develop business opportunities that provide investors with completely proprietary deal flow and investment opportunities.
TVM Capital Healthcare Partners has broken new ground with four portfolio investments to date in specialized services that were either non-existent or drastically undersupplied, e.g., long-term care, rehabilitation, home care and world-class fertility treatment. A fifth investment focuses on the area of medical device development and manufacturing. The firm operates out of the Dubai International Financial Center (DIFC) and is licensed and regulated by the Dubai Financial Services Authority (DFSA) www.tvm-capital.ae / www.tvm-capital.com
About ProVita International Medical Center
ProVita created the long-term care market in the UAE and is the foremost provider of acute, ventilated care in the region. ProVita offers international standards of care for ventilated patients and those requiring continuous medical and nursing intervention for serious medical conditions in a home-style facility ensuring best possible Quality of Life for each resident. ProVita facilities in Abu Dhabi and Al Ain provide exceptional care and rehabilitative services to ventilator-dependent residents who have previously been treated in ICU or have had to go abroad to get the quality care that they required. It is the strict adherence to world-class standards of care and our relationships with western partners that sets the company apart.
Brunswick Gulf on behalf of TVM Capital Healthcare Partners
Heather Salmond / Dominic Whiting +971 4 446 6270
Mohammad Al Qassem +971 56 174 8649