MD Medical Group Completes Acquisition of ARTMedGroup - News — Group of companies "Mother and child"
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29.01.2016

MD Medical Group Investments Plc (“MD Medical Group”, “MDMG” or the “Company”– LSE: MDMG), a leading Russian private healthcare provider, today announces the closure of its acquisition of 100% of the shares of the ARTMedGroup (AMG) chain of reproductive technology centres, one of Russia’s five largest healthcare companies and the Siberian market leader in terms of completed IVF cycles.

The AMG chain comprises five centres in Siberia’s largest cities: Krasnoyarsk (two clinics), Omsk, Novosibirsk and Barnaul. AMG’s primary areas of focus – IVF, as well as women’s and children’s healthcare services – are fully complementary to MDMG’s core specialisms.

The value of the transaction was RUB 485 million.

Following completion of the transaction, MDMG’s chain in the Siberian Federal District has substantially expanded and as of now includes four clinics and one hospital in Novosibirsk, two clinics in Krasnoyarsk, and clinics in Omsk, Irkutsk, Barnaul and Novokuznetsk.

Mark Kurtser, Chairman of the Board of Directors of MD Medical Group, said:

“We are pleased to have acquired the acknowledged leader in the IVF segment in Siberia. ARTMedGroup has a track record of almost 20 years that speaks for itself. This acquisition opens up three new regions for us, and will help us to strengthen our presence in the Siberian Federal District.
“Our investments, including our recently completed acquisitions, are consistent steps towards implementing our strategy of regional expansion.
“We have become the largest player in the Siberian IVF market and envisage the further development of our 11 facilities in the SFO as a single block with its centre in Novosibirsk.”

ARTMedGroup

АRTMedGroup has provided reproductive medical services for 19 years. Today its network comprises five centres in Siberia’s largest cities – Krasnoyarsk, Omsk, Novosibirsk and Barnaul – with a combined population of 4.4 million people.

ARTMedGroup’s core specialisation is IVF. In addition, the company provides services in the fields of women’s and children’s health. ARTMedGroup’s clinics have a total are of 3,415 sq. m. In 2014, ARTMedGroup had revenue of RUB 395 million.

Siberian Federal Region

The Siberian Federal District (SFO) has a population of approximately 19.3 million people, of which roughly a quarter live in Krasnoyarsk, Omsk, Novosibirsk and Barnaul. The SFO has high birth rates: in 2014 there were more than 283,000 births, or 14.7 per thousand inhabitants, more than the average for Russia (13.3) and in Moscow (11.4).

For further information please contact:

Investors

Media

Elena Romanova

MD Medical Group Investments Plc
Tel: +7 495 331 4120
e.romanova@mcclinics.ru

EM
Moscow
Tom Blackwell / Sergii Pershyn 
Tel: +7 495 363 2849
MDMG@em-comms.com


About MD Medical Group

MD Medical Group operates in the highly attractive Russian private healthcare service market and has a leading position in high-quality women's health and paediatrics. The company manages 29 modern healthcare facilities, including 4 hospitals and 25 outpatient clinics in Moscow, St. Petersburg, Ufa, Perm, Samara and Samara region, Irkutsk, Novosibirsk, Irkutsk, Yaroslavl, Ryazan, Novokuznetsk, Krasnoyarsk, Omsk, and Barnaul.

The Company's shares have been listed on the London Stock Exchange (LSE ticker "MDMG") in the form of Global Depositary Receipts (GDRs) since 12 October 2012.

Forward-Looking Statements:

This press release contains forward looking statements, which are based on the Company’s current expectations and assumptions and may involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The forward looking statements contained in this press release are based on past trends or activities and should not be taken that such trends or activities will continue in the future. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially, including, but not limited to: conditions in the market, market position of the Company, earnings, financial position, cash flows, return on capital and operating margins, anticipated investments and economic conditions; the Company’s ability to obtain capital/additional finance; a reduction in demand by customers; an increase in competition; an unexpected decline in revenue or profitability; legislative, fiscal and regulatory developments, including, but not limited to, changes in environmental and health and safety regulations; exchange rate fluctuations; retention of senior management; the maintenance of labour relations; fluctuations in the cost of input costs; and operating and financial restrictions as a result of financing arrangements.

No statement in this press release is intended to constitute a profit forecast, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for the Company. Each forward looking statement relates only as of the date of the particular statement.


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