Gulf Capital sells Metamed to Ray Lab and a consortium of global investors

Dealis one of the few secondary transactions amongst private equity firms in the MENA

Dubai: Gulf Capital, a Middle East based alternative asset managers announced on Wednesday that it has completed the sale of Metamed, the region’s largest diagnostic imaging network, to Ray Lab, owned by a consortium of international and regional investors.

The consortium of buyers 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).

The sale is one of the few secondary transactions amongst private equity firms in the MENA region in recent years.

During Gulf Capital’s ownership, Metamed grew its total number of centers three-fold, from 10 to 30 centres across Egypt, Saudi Arabia and Jordan. Metamed’s services were also expanded to include adjacent healthcare offerings, such as clinical and anatomical pathology, nuclear medicine services and women healthcare. During this period, sales in Egypt grew by five times from the entry level and profitability by 4.3 times. In Saudi Arabia, sales doubled and profitability grew 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,” said Dr. Karim El Solh, Chief Executive Officer of Gulf Capital

Gulf Capital was advised by HC Securities & Investments, Gibson Dunn & Crutcher and Matouk Bassiouny.

“Metamed is a highly successful company, well positioned to fulfil 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 organisation,” said Albert Alsina, Founder and CEO at Mediterrania Capital Partners.