Abu Dhabi-based buy-out company Gulf Capital is set to make it second biggest private equity investment after splashing out more than $100 million to acquire a fertility treatment provider.
IVI-RMA Middle East is the fastest growing fertility business in the region and the acquisition will see it spun off from its Spanish parent company.
In addition to the $100 million spent to acquire the business, Gulf Capital will also allocate a further $509 million to fund IVI-RMA’s expansion plans and its aim to build further clinics in Asia and Europe.
The fertility services provider currently operates three clinics in the Middle East, in Abu Dhabi, Oman and Dubai as well as a regional base within Dubai’s DMCC free zone.
The Middle East-based clinics currently generate less than $50 million in revenue through undertaking more than 2,000 IVF treatment cycles per year with a profitability rate between 20 and 25%.
“What we are trying to do in the next five years is to grow the business north of $200 million.,” said Gulf Capital chief executive Suresh Soni.
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