25 April 2023 | Dubai | Amanat Holdings PJSC (“Amanat” or the “Company”), the leading healthcare and education listed investment company, announces the completion of the acquisition of a majority stake in Sukoon International Holding Company CJSC (“Sukoon”) through a merger with Cambridge Medical & Rehabilitation Center (“CMRC”).
Merger creates the largest pan-GCC post-acute care provider, with a target to deliver 1,000 pan regional beds in three years
Merged entity is a core component of Amanat Healthcare, the new market-leading healthcare platform
Amanat owns c. 85% of the post-merger entity
The merger, which was initially announced in December 2022, creates the largest pan-GCC post-acute care provider with c.400 operational beds and an additional c.300 bed expansion underway, across UAE and KSA. The merged entity is a core component of Amanat’s new market-leading healthcare platform, Amanat Healthcare, which consolidates Amanat’s portfolio of world class healthcare assets into a single platform.
The transaction was completed through a non-cash share swap, whereby certain of the Sukoon shareholders received c.15% of Amanat’s shares in CMRC in return for Amanat receiving additional shares in Sukoon. Following completion adjustments, Amanat will own c.85% of the post-merger entity.
Amanat’s Chairman, Hamad Alshamsi, said:
“The completion of the merger of Sukoon with CMRC marks an important milestone in Amanat’s strategy to realize shareholder value through active portfolio management. The merger, which creates the largest post-acute care provider in the GCC, places Amanat in a strong position to benefit from the significant post-acute care bed gap across KSA and the UAE.
“The merged entity strengthens our newly announced platform, Amanat Healthcare, consolidating its position as a market-leading provider of specialized healthcare in the GCC and enhances the range of strategic value creation options for the platform, including a potential IPO in the near-term.”
Amanat’s Acting Chief Executive Officer, John Ireland, added:
“We are delighted to formally welcome Sukoon into the Amanat Healthcare family. Amanat acquired a minority stake in Sukoon in 2015, and we subsequently worked successfully with our colleagues and partners to transform it into one of the leading post-acute care and rehabilitation providers in KSA. With the expansion of our existing facility underway, we are confident we will continue to grow profitability and margins at Sukoon in the near term.
“We now look forward to working with the market-leading management teams at CMRC and Sukoon to integrate our post-acute care businesses, delivering both revenue and cost synergies and providing a strong platform for future growth.”
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About Cambridge Medical and Rehabilitation Center
Cambridge Medical and Rehabilitation Centre (“CMRC”) is a provider of specialized in-patient and out-patient rehabilitation and long-term care, with facilities in Abu Dhabi and Al Ain in the UAE, and Dhahran in Saudi Arabia operating 256 beds.
CMRC provides multidisciplinary and intensive rehabilitation for individuals suffering from a range of medical conditions such as strokes, brain or spinal cord injuries, or congenital conditions including Cerebral Palsy.
With operational and medical excellency central to their ethos, CMRC is accredited by the Joint Commission International (“JCI”), the pre-eminent body for healthcare quality and safety in the world and Commission on Accreditation of Rehabilitation Facilities (“CARF”), the gold standard for rehabilitation.
About Sukoon International Holding CJSC
Sukoon International Holding CJSC (“Sukoon”), a closed joint-stock company founded in 2007, provides extended care and critical care medical services to patients who are no longer suited for care within a traditional hospital setting. Such patients range from those who require short stay to undergo rehabilitation before being discharged for home care to patients suffering chronic diseases or those in need of 24/7 care on a one-on-one basis (otherwise known as ‘long-term care’ or ‘LTC’).
Sukoon’s business model allows for a higher quality of care at a cost-effective price vis-à-vis what a hospital is able to offer. Sukoon has an operational bed capacity of 130 beds at its flagship facility in Jeddah. It was recently awarded CBAHI accreditation (Saudi Central Board for Accreditation of Healthcare Institutions).