EGYPT – Mediterrania Capital Partners has acquired an undisclosed stake in MetaMed, the largest platform of Diagnostic Imaging centres in Egypt, Jordan and Saudi Arabia.
The transaction, with a total value of over €100million (US$109.57m), includes a capital injection to accelerate the execution of the business plan.
“Over the past decade, MetaMed has accumulated the experience, technical knowledge, and awareness of market dynamics to maintain and grow its position in its respective markets,” Daniel Viñas, Mediterrania Capital Partners’ Partner, said.
“Thanks to strong operational synergies with Cairo Scan, the acquisition of MetaMed allows us to consolidate our position in Egypt while we expand to new markets like Jordan and Saudi Arabia, where the growth potential for DI services is huge.”
MetaMed was created in 2009 by Gulf Capital GC Equity Partners II as Technogroup Investments Holdings (TGIH) with the purpose of investing in Diagnostic Imaging (DI) and related radiology services such as MRI, CT Scanning and X-Ray.
After several acquisitions and expansion of the different businesses, MetaMed currently owns, manages and operates 27 DI centres mostly located in Egypt, a few centres in Jordan and Saudi Arabia, and one centralised clinical laboratory in Egypt.
In 2018, Mediterrania Capital Partners invested in Cairo Scan, a private provider of medical imaging services and diagnostics in Egypt.
The Private Equity firm intends to fully integrate MetaMed and Cairo Scan’s businesses creating the largest platform of Diagnostic Imaging and related services in the region with more than 45 branches in total.
Mediterrania Capital’s objective is to lead the consolidation of the medical services market in the region through a combination of organic and inorganic growth.
Growing awareness on diagnostic imaging usage, increasing healthcare expenditures and advancements in technologies are driving the growth of the DI sector worldwide.
In particular, MetaMed has benefited from strong favourable healthcare market dynamics in its home markets.
The resulting platform composed of Cairo Scan and MetaMed will be Chaired by Dr Hatem El Gabaly, Cairo Scan’s current Chairman.
“With the acquistion of MetaMed and financial support from the investors’ consortium we are looking to expand our branch network in the existing geographies, acquire new equipment and continue to use the most advanced technologies that will enable us to offer the highest quality DI services in the region, increase capacity and diversify into new revenue streams,” Dr Hatem El Gabaly said.