Abu Dhabi, UAE
PureHealth, a UAE-based healthcare group, has invested more than Dh1.8 billion (US$500 million) to directly acquire a minority stake in a US healthcare group, making its foray in the world’s largest economy.
It has purchased a minorty equity in Ardent Health Services, a leading US healthcare provider based in Nashville, Tennessee.
The landmark transaction reflects PureHealth’s global expansion, building on the group’s existing footprint of more than 25 hospitals, 100 clinics, and more than 160 laboratories in the UAE, while Ardent is the fourth-largest privately held healthcare system in the US with more than 1,400 aligned providers, 30 hospitals, more than 23,000 employees and more than 200 sites of care across six US states.
“We are proud to be the first UAE-based healthcare group to acquire assets in the US. The conclusion of this transaction marks the beginning of a new phase of growth for PureHealth in which we will build on our global relationships and strengthen our international reputation.” Farhan Malik, Managing Director and CEO of PureHealth, said.
As one of the leading healthcare company in the UAE, PureHealth is aligned with the vision of the UAE leadership to promote well-being in the community. In today’s volatile market environment, minority investments can be particularly attractive. Consider this: As per valuations in traditional buyouts multiples have declined in December 2022, while at the same time interest rates were seen rising.
“As the region’s largest healthcare group, we are committed to working with our partners to advance patient-centric care and elevate healthcare systems. We remain focused on delivering an unrivaled healthcare experience through innovation, technology-driven solutions, and collaboration. This acquisition not only enables us to enhance our services and offer unparalleled patient experiences in the UAE but also reflects our commitment to adopting the most advanced clinical practices to support our north star of advancing the science of longevity and unlocking time for humanity.”
The objective of minority investments is to provide capital to a company already exhibiting significant growth and trending in an upward trajectory. Minority investments, relative to traditional control buyouts, can help investors mitigate risk while preserving the important alignment with existing shareholders and management to grow the enterprise.
Completion of this transaction of PureHealth further strengthens PureHealth’s vision towards becoming a leading global player in healthcare, committed to creating a healthier community in UAE and beyond.
Mark Sotir, President of EGI, said, “EGI excels at bringing together like-minded organisations who are passionate about improving their industry and creating value for all stakeholders. This investment strengthens our ownership group and we’re excited that PureHealth shares our confidence in Ardent’s growth trajectory.”
