A global consortium of international and regional investors, Ray Lab has acquired the MENA region’s largest diagnostic imaging network MetaMed from the Middle East-based alternative asset managers Gulf Capital.
Ray Lab includes Mediterrania Capital Partners, Cairo Scan for Radiology and Labs and a number of European Development Financial Institutions (DFIs) including Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG), Dutch Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Société de Promotion et de Participation pour la Coopération Economique (Proparco) and the European Bank for Reconstruction and Development (EBRD).
Under Gulf Capital’s management, Metamed expanded its total number of centers three-fold, from 10 to 30 centers across Egypt, Saudi Arabia and Jordan. Metamed’s services were also extended to include adjacent healthcare services, such as clinical and anatomical pathology, nuclear medicine services and women healthcare. During this time, sales in Egypt rose by five times from the entry-level and profitability by 4.3 times. In Saudi Arabia, trade doubled and profitability improved by 2.5 times.
“This investment is another example of how Gulf Capital adds value and transforms local players into regional leaders. We are confident that Metamed will continue to flourish under the ownership of Mediterrania Capital Partners, Cairo Scan for Radiology and Labs Co. and this prestigious consortium of international investors. It has been a pleasure working with Dr Ihsan Hamarneh and his talented management team, and we would like to thank them for their leadership and contributions over the last few years”
Gulf Capital was directed by HC Securities & Investments, Gibson Dunn & Crutcher and Matouk Bassiouny in the transaction, while law firm Zaki Hashem and Partners worked with Ray Lab, Mediterrania Capital Partners and Cairo Scan.
“Metamed is a highly successful company, well-positioned to fulfill the increasing demand for private medical services in the MENA region. The combination of Metamed and Cairo Scan will create one of the largest diagnostics imaging platforms in emerging markets, and we are excited by the growth potential of this new combined organization.”
Mediterrania Capital is a private equity organization that invests in small and medium enterprises and mid-cap companies in Africa. The firm with yearly earnings of $1.65 billion has facilities in Abidjan, Algiers, Barcelona, Cairo, Casablanca and Valletta.