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DIC acquires UK firm for $1.25b

DUBAI — Dubai International Capital (DIC) has acquired Alliance Medical, Europe's leading diagnostic imaging company, from Bridgepoint, a UK private equity firm, in a $1.25 billion deal.

DIC, the international investment arm of Dubai Holding, said the move was aimed at harnessing growth in the outsourcing by hospitals of medical scanning equipment and staff.

The takeover marks the first move into healthcare by DIC, which has made its mark through several major global buy-outs over the past two years. It bought the Tussauds group for £800 million and the Doncasters defence engineering group for £700 million in 2005, the Travelodge hotels operator for £675 million in 2006, 850 million euros acquisition of Mauser AG, a world market leader in industrial packaging and a 9.9 per cent outstanding equity stake in Och-Ziff, a leading institutional alternative asset management firm.

Market sources said the deal is a success for Bridgepoint, which controls over £4 billion of managed assets. Bridgepoint has made a four times return on the sale, which acquired Alliance for $172 million in 2001. Since then, it has grown from a mid-sized UK company to a European leader after 16 acquisitions, notably in Italy, Germany, the Netherlands, Spain and Ireland.

Financing for the Alliance deal was provided by Dresdner Kleinwort, which funded the initial Bridgepoint deal in 2001, and Bank of Scotland. The transaction is subject to the appropriate regulatory approvals.

Announcing the deal, Sameer Al Ansari, Executive Chairman and CEO of Dubai International Capital, said the acquisition combines strong financial performance with technical excellence. "We are committed to investing in growth companies that are leaders in their field. This latest transaction is the third buy-out for DIC Private Equity in 2007 and follows our investments in Mauser, one of the world's largest industrial packaging producers, and Almatis, the world's leading producer of alumina-based products. We look forward to supporting Alliance Medical's growth strategy under the leadership of its successful management team."

Sylvain C. Denis, Chief Executive Officer of Dubai International Capital Private Equity said the acquisition marked DIC's first foray into the healthcare sector and is an important contribution to the diversification of its asset portfolio. "We look forward to working with the management team of Allied Medical to explore new routes for growth and to provide access to new markets, such as the Arabian Gulf and the broader Asian region."

Bridgepoint said Alliance Medical generated revenue of £132 million last year by operating more than 190 fixed and mobile scanners, including magnetic resonance imaging (MRI) and more advanced computer tomography (CT) scans. Earnings before interest, tax, depreciation and amortisation were about £37 million last year, a five-fold increase from 2001. Alliance also operates positron emission tomography (PET), an imaging tool that involves patients being injected with a radioactive nuclear substance to help diagnose cancer, cardiovascular and neurological illnesses.

In the past six years, Alliance Medical has successfully consolidated its UK market position as well as expanded into Continental Europe through 16 acquisitions, most notably in Ireland, Italy, Germany, the Netherlands and Spain. Based in Warwickshire, Alliance Medical operates more than 140 scanners and for the year ended 31 March 2007 had revenues of £132 million. Since 2001, Alliance Medical has increased revenues six fold, more than doubled profits and employee numbers have risen from 177 to 690.