Kidney-Care Specialist Diaverum to Be Sold in $2 Billion Deal
Khaldoon Al Mubarak, chief executive of Mubadala Investment Co. Photo: Hollie Adams/Bloomberg News By Ben Dummett April 18, 2023 4:29 pm ET A Mubadala Investment Co.-backed healthcare company is nearing a deal to acquire kidney-care provider Diaverum for more than $2 billion including debt, according to people familiar with the matter, extending the Abu Dhabi sovereign-wealth fund’s bet on healthcare. M42, a newly launched healthcare operator owned by Mubadala and a partner company, G42, are acquiring Diaverum from U.K.-based buyout firm Bridgepoint Group PLC. A deal is expected to be announced later this week, assuming talks don’t break down, the people said. The deal would help bolster M42’s existing operations in the Middle East while accelerating its stated ambition to expand its heal
Khaldoon Al Mubarak, chief executive of Mubadala Investment Co.
Photo: Hollie Adams/Bloomberg News
By
A Mubadala Investment Co.-backed healthcare company is nearing a deal to acquire kidney-care provider Diaverum for more than $2 billion including debt, according to people familiar with the matter, extending the Abu Dhabi sovereign-wealth fund’s bet on healthcare.
M42, a newly launched healthcare operator owned by Mubadala and a partner company, G42, are acquiring Diaverum from U.K.-based buyout firm Bridgepoint Group PLC. A deal is expected to be announced later this week, assuming talks don’t break down, the people said.
The deal would help bolster M42’s existing operations in the Middle East while accelerating its stated ambition to expand its healthcare services globally. Its existing holdings include Amana Healthcare, a U.A.E. provider of rehabilitation and other services, and Imperial College London Diabetes Centre, a partnership set up with the U.K. university to treat the growing demand for diabetes care in the Emirates.
Diaverum, based in Sweden, oversees a global network of 440 dialysis clinics, almost triple the 155 facilities Bridgepoint inherited when it bought the business in 2007 for an undisclosed amount. Diaverum has also expanded geographically over that period, operating in 23 countries, up from 15.
Dialysis is a procedure to remove waste products and excess fluid from the blood when the kidneys stop working properly. It often involves diverting blood to a machine to be cleaned. The size of the dialysis market globally is expected to grow in coming years because of aging populations and the increased incidence of kidney disease related to diabetes and other conditions.
Diaverum’s operations include 40 dialysis facilities in Saudi Arabia where Diaverum operates under a five-year contract with the Saudi Ministry of Health, according to the company’s website. Confidence in winning renewal of the license in 2024 was key to the deal, which gave M42 an advantage over other bidders because of its existing base in the region and Mubadala’s backing, said some bankers following the sale process.
Mubadala is the investment arm for the Abu Dhabi government. It oversees $284 billion in assets and invests across a range of industries including business services, energy, financials, healthcare and industrials.
Bridgepoint manages more than €37 billion, equivalent to about $40.6 billion of assets, focusing its investments in industrials, business and financial services, consumer and healthcare, according to the firm’s website.
Bridgepoint attempted to list Diaverum in an initial public offering in 2020. It withdrew the IPO after not achieving a high-enough valuation.
Write to Ben Dummett at [email protected]
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