NMC Health jumps on acquisitions in the UAE

Healthcare provider NMC Health has completed the acquisition of two sector peers based in the United Arab Emirates for a combined $100m (£65m).

The London-listed UAE group said in a statement it has bought Americare Group, a provider of in-home healthcare in Abu Dhabi and Dr. Sunny Healthcare Group, which runs six medical centres and three pharmacies in the emirate of Sharjah.

Both businesses had a combined earnings before interest, tax, depreciation and amortisation (EBITDA) of $11.5m in 2014, NMC said.

Following the deal, analysts at Numis raised the target price on the stock for the second time in six weeks.

"Both acquisitions are interesting as they diversify NMC's revenues (one into a new service line and one expanding geographically) and both can provide referrals into its existing specialty hospitals," the brokerage said in a note.

NMC shares were up 4.22% to 692.00p at 10:40 on Wednesday.