Gulf Capital , one of the largest private equity firms in the Middle East , according to reports, has announced its acquisition of 75% interest in TechnoScan, the largest chain of medical diagnostic imaging centers in the Middle East. TechnoScan, founded in 1995 in Egypt, currently operates 15 imaging centers, 13 of which are wholly owned and 2 of which are owned in partnership with other investors. The TechnoScan centers were founded by Dr. Ossama Khalil, a well known and respected Egyptian physician. Dr. Khalil shall remain a co-owner of the Company and member of the Board of Directors.
With population of around 79 million, Egypt is the second largest healthcare market after Saudi Arabia. Healthcare spending in Egypt has increased by 22% in 2009 according the EIU estimates to reach $13.3 billion, and is expected to continue on this trajectory as a result of aging population, alleviated health awareness, increased incomes, and most importantly increased incidences of lifestyle diseases.
Imaging, which constitutes between 10% to 15% of private healthcare spending, is expected to grow substantially as well. Demand growth will require substantial investment by the private sector, and TechnoScan — as the largest private chain — will be a primary beneficiary of this opportunity. For example, the number of MRI scans in Egypt is 7000 per million (compared to 64000 in developed countries), and is expected to grow by 15% to 20% in the next two years.
TechnoScan will gain substantially from the strategic alliance between GE Healthcare and Gulf CapitalGulf Capital that was announced recently. GE Healthcare will be offering strategic support to TechnoScan, and will collaborate closely in the roll out and new services.
Gulf CapitalGulf Capital is a leading alternative investment company focused primarily on investing capital in the GCC region. Incorporated in Abu Dhabi in 2006 as a Private Joint Stock Company, Gulf CapitalGulf Capital was established with a capital base of AED 1.225 billion (USD 330 million) from 300 of the most prestigious institutional and individual investors in the Gulf. The Firm is currently investing its $500 million GC Equity Fund II, raised from regional and global investors. Gulf CapitalGulf Capital is focused on acquiring sizeable and controlling stakes in highly profitable and rapidly growing companies within a select number of fast-growing industries in the GCC region. With its private equity and real estate initiatives, Gulf CapitalGulf Capital is rapidly emerging as a leader in the field of alternative investing in the Middle East.
TechnoGroup is the largest chain of medical diagnostic and imaging services such as MRI, CT, XRay, Ultrasound, and mammography. The Company was founded by Dr. Osama Khalil, one of the top radiologists in Egypt, in 1995. It offers its services in 13 owned centers and 2 licensed centers across Egypt. TechnoGroup has an aggressive growth plan in the MENA region taking advantage of the expanding opportunities for private sector healthcare providers. Its growth plans are focused on increasing the number of centers in new cities and neighbors, expanding its service offering to PET, laboratories and other diagnostic services, and developing its tele-radiology operation.