PE-backed Aster DM to acquire UAE-based home healthcare firm

By TEAM VCC

  • 31 Dec 2019
Credit: 123RF.com

Aster DM Healthcare Ltd said on Tuesday it has signed a pact to acquire Abu Dhabi-based Wahat Al Aman Home Healthcare LLC for an estimated amount of AED 105 million ($28.6 million or Rs 204 crore).

The acquisition of the home healthcare services provider will enhance Aster DM’s presence in Abu Dhabi, the hospital operator said in a stock-exchange filing.

The deal value could change on the basis of Wahat Al Aman’s financial performance, it said.

Wahat Al Aman was incorporated in February 2019 and operates a home healthcare business in Abu Dhabi and Al Ain in the United Arab Emirates.

The transaction is likely to conclude by January 31, 2020, subject to approval from the departments of economic development and health of Abu Dhabi.

Aster DM Healthcare is one of the largest private healthcare service providers in Asia with operations in India and the Gulf Cooperation Council (GCC) region. This is the company’s first acquisition since it floated its initial public offering in early 2018.

The company counts private equity firms True North and Olympus Capital among its investors. True North had first backed the hospital firm in 2008 while Olympus Capital came on board in 2012.

Earlier in 2019, True North sold most of its stake in the hospital company with benchmark returns. The PE firm held a 2.15% stake in Aster DM at the end of September, stock-exchange data showed. Olympus Capital owned around 23%.