Private equity firm Mediterrania Capital Partners has acquired diagnostic imaging centre business MetaMed.
The deal is valued at more than €100 million.
The acquisition was made via Mediterrania Capital Partners’ fund MC III. The fund’s investors include FMO, Proparco, DEG and EBRD.
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.
MetaMed currently owns, manages and operates 27 DI centres mostly located in Egypt, with a few centres in Jordan and Saudi Arabia, and one centralised clinical laboratory in Egypt.
Advisers on the deal included Cuatrecasas, Dentons, Zaki Hashem & Partners, Zu’bi Advocates and Legal Consultants, Covington, Cary Olsen and Zammit Pace and FJVA. Deloitte provided financial advice, while commercial advice was provided by Efeso. ESG and ERM.
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 and create the “largest platform of diagnostic imaging and related services in the region” with more than 45 branches in total.
Daniel Viñas, partner at Mediterrania Capital Partners’ Partner, said: “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. 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.”
The resulting platform composed of Cairo Scan and MetaMed will be chaired by Dr Hatem El Gabaly, Cairo Scan’s current chairman.
El Gabaly said: “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.”
Mediterrania Capital Partners focuses on “growth investments” in SMEs and mid-cap companies in Africa. It has offices in Abidjan, Algiers, Barcelona, Cairo, Casablanca and Valletta. The fund invests in companies with an annual turnover of €20 million to €300 million and expansion strategies focused on North and Sub-Saharan African markets.