Hospital operator Aster DM Healthcare Ltd has entered into an agreement to fully acquire Abu Dhabi-based Wahat Al Aman Home Healthcare LLC for about $28.6 million (Rs 204 crore), per the company’s regulatory filings.
Aster has routed the acquisition through its subsidiary, Aster DM Healthcare FZC, and the deal value could change on the basis of Wahat Al Aman’s financial performance.
The acquisition will help Aster DM enhance its presence in Abu Dhabi market, the filings said.
Incorporated in February 2019, Wahal Al Aman operates a home healthcare business in Abu Dhabi and Al Ain. The company’s business model involves deputation of nurses and doctors at the homes of the patients to provide medical care.
The transaction is expected to conclude by January 31, 2020, subject to approval from the departments of economic development and health of Abu Dhabi.
Founded by Dr. Azad Moopen in 1987 as a single clinic, Aster DM currently runs hospitals in India and the Middle East. According to the company’s website, it has 308 establishments in nine countries. Headquartered in Dubai, the Aster DM network encompasses 17,33 employees, 2,860 doctors with several JCI accredited hospitals, clinics and diagnostics centres.
Private equity firm True North invested in Aster DM in 2008. It sold its 7.4 per cent stake in the hospital chain in June last year. True North continues to stay invested in the company through its fourth and fifth private equity funds. As of September 2019, True North held a 2.15% stake in Aster DM.
Aster DM Healthcare, which also counts PE firm Olympus Capital as its investor, went public in February 2018 by raising Rs 980 crore.