MD Medical Group completes acquisition of four clinics in Khanty-Mansi Autonomous Area–Yugra
19 September 2023 – MD Medical Group (“MD Medical Group”, “the Group” or “the Company”; MOEX: MDMG), a leader of Russia's private medical services market, announces that it has completed the acquisition of four clinics in the Khanty-Mansi Autonomous Area–Yugra.
Following the acquisition, the Group will take a leading position in private medicine in the area and create an outpatient base for referring patients to the Group's hospital in Tyumen for high-tech services. The total cost of the deal is RUB 349 million paid from the Group's own funds.
With a population of 1.7 million, the Khanty-Mansi Autonomous Area is the second largest economy in Russia (after Moscow). Due to its economic performance, the region is of strategic interest for the Group's expansion.
Biomeditsina Diagnostic and Treatment Centre is one of the leading clinics in Surgut with an area of 949 sq m. It provides a full range of outpatient services with MRI diagnostics and can handle up to 99,000 visits per year. The Group acquires 100% of the centre.
Antireflux-Biomed is the leader in the treatment of phlebological diseases in Surgut. With an area of 200 sq m, the clinic can handle up to 18,000 visits per year. The Group acquires 75% of the clinic.
Vira-Centre is the first and largest private medical company in Nefteyugansk. Having operated for 27 years, it is currently represented by two clinics with a total area of 832 sq m. The company provides a full range of polyclinic services and has a laboratory of its own. The clinics’ traffic is around 84,000 visits per year. The Group acquires 100% of the company.
Mark Kurtser, CEO at MDMG, said:
"The deal is a logical continuation of the Group's expansion into promising and new regions. The Khanty-Mansi Autonomous Area is Russia’s leading region in terms of economic development and the 27th region in our geography. Our own competences, including those related to women's health and IVF, will contribute to the region’s welfare. MD Medical Group's high quality standards of medical care and professional team of doctors in the clinics will allow us to increase the volume of healthcare and lead in the region. We will also be able to refer patients to our hospital in Tyumen for high-tech care, which will be an additional growth driver for the hospital."
- This announcement contains inside information
About MD Medical Group
MD Medical Group is a leading provider in the highly attractive Russian private healthcare service market. Today, the Company manages 53 state-of-the-art healthcare facilities, including 10 multidisciplinary hospitals and 43 out-patient clinics in 27 regions of the Russian Federation. In 2022, MD Medical Group's revenue amounted to RUB 25.2 bln while EBITDA amounted to RUB 7.9 bln. The Company's GDRs are traded on Moscow Exchange (MOEX: MDMG).