Transaction represents continuation of momentum and enhancements driven by Evercare in partnership with TMG
Acquisition deepens TMG’s longstanding commitment to Metropolitan Hospital and diversified healthcare investments across Kenya
Nairobi, Kenya -- 24 November 2022 --The Metro Group Plc (TMG) has completed the acquisition of the Evercare Health Fund’s majority shareholding in Metropolitan Hospital Holdings Limited (MHHL), the holding company that owns Metropolitan Hospital and Ladnan Hospital. The transaction will enable the Hospitals to continue on their growth trajectories while maintaining their commitment to delivering high quality and accessible healthcare services in underserved communities. With the close of the transaction, TMG now assumes majority ownership of MHHL. Terms of the transaction were not disclosed.
Through Evercare and TMG’s investment over more than a half of a decade, Metropolitan Hospital has seen extensive operational improvements and enhancements and has raised the bar for healthcare provision in Kenya. The partnership resulted in Metropolitan Hospital achieving Level 5 Classification, accreditation by COHSASA and a Level F laboratory status -- among the highest level attainable by a hospital in Kenya, expanded bed capacity to 160, introduction of modern modular theatres, a medical plaza that hosts over 40 consultants, and many other achievements.
As part of the transaction, the current Evercare Board representatives, Jide Olanrewaju, Dr Dumani Kula, Thomas Verghese, and Dr Lawrence Ndombi have stepped down from the board of MHHL and will be replaced by new directors from TMG.
Dr. Kanyenje Gakombe, Founder and CEO of Metropolitan Hospital commented, "We are very proud of the success we have realized through our partnership with the Evercare Health Fund. As a leading healthcare provider in the country, we are now looking to the next phase in our strategy that will continue to enhance the country’s healthcare ecosystem for both patients and practitioners. Our goal is to offer world-class healthcare while developing local talent and increasing access to quality, affordable care.”
Matthew Hobart, Chairman of Evercare’s Board of Directors and Co-Managing Partner of TPG Growth who leads healthcare investments for TPG Rise said, “Since our investment in Metropolitan Hospitals, we’ve provided nearly 300,000 patient episodes of care. MHHL was the first tertiary care provider in East Nairobi and offers secondary and limited tertiary care services across a range of specialties, demonstrating that impact-driven private capital can deliver well-managed, patient-centric healthcare to the communities that need it most. This transaction is a testament to the success of our collaboration with TMG and we are grateful for their partnership over the course of our investment. Under the stewardship of TMG, the founders of the Metropolitan Hospital, we believe the Hospitals are well-positioned to continue on their growth trajectories.”
“I am deeply proud of the progress we’ve achieved with the support, commitment, and expertise from Evercare and TMG,” said Dr Ndombi, outgoing Chairman of the Board of Metropolitan Hospitals Holdings. “Our doctors and staff have elevated the quality of care within the community and have the support and resources from TMG to continue to exceed the needs of our patients going forward.”
Established in 1994, the Metropolitan Hospital employ over 350 staff and is equipped to handle complex to highly specialized cases that are backed up by 7 theatres, a 24-hour dialysis centre,14 bed adult ICU, 4 bed Neonatal ICU, 10 bed casualty receiving facility, a doctors plaza with over 40 consultants, among other services.
Metropolitan Hospital serves as the major tertiary care provider in the region. Of the approximately 300,000 patients served throughout Evercare’s investment period, the vast majority represent lower- and middle-income patients who had limited options for quality care.
“Dr. Gakombe and the TMG team have been terrific partners as we’ve worked together to leverage the power of the Evercare Group to deliver both exceptional care and world-class support for doctors and staff. We are pleased that MHHL will remain held by its founders, who have demonstrated their commitment to serving the local community by investing in this vital asset over many years. We wish TMG well as they continue to build their leadership in healthcare delivery in Kenya,” said Massimiliano Colella, Group CEO, Evercare Group.
The private healthcare sector in Kenya is a prominent contributor to healthcare outcomes in the country as it currently provides 52% of all healthcare services and will continue to play a bigger role in the future. Channelling private sector funding towards the healthcare sector is therefore key to filling gaps in patient care, especially among traditionally underserved communities. The private sector investment in healthcare helps alleviate the burden on local healthcare systems through supplementing both preventative and specialised care.
Advisors
McKay Advocates acted as legal counsel to TMG.
Debevoise & Plimpton LLP acted as international legal counsel, Bowmans LLP as local counsel to the Evercare Group for the transaction and I&M Burbidge and Nedbank acted as joint financial advisors.
About TMG
The Metro Group Plc (TMG) is a Public Limited Company that was founded by a group of young healthcare professionals in mid-1994 as Metropolitan Health Services (MHS). They sold shares in the company to the public putting the shareholding at over 500 shareholders. Its flagship project was Metropolitan Hospital which was founded on the belief that it is possible to offer quality, cost effective, and affordable healthcare services to all. The now 160 bed capacity Hospital located in Buruburu became part of the Evercare Healthcare system when the holding company, TMG partnered with an external investor in Metropolitan Hospital and Ladnan Hospital. TMG then took on the role of a co-investor in the two hospitals through its shareholding in MHHL. TMG has since purchased a majority shareholding in MHHL, giving them effective control of both Metropolitan and Ladnan Hospitals.
For more information, visit: tmg.ke.
About the Evercare Group
The Evercare Group believes access to healthcare is a fundamental right and invests in emerging markets to bring private, quality-driven healthcare to meet the needs of local people.
Evercare has responded to a global challenge to ensure well-being at all ages is provided to those living in emerging markets as a pillar to support sustainable economic development. With this, the Group is leading the way in transforming the traditional healthcare model through its integrated cross-continents platform, its impact-driven model, and quality-driven hospitals.
The Evercare Group operates as an integrated healthcare delivery platform in emerging markets across Africa and South Asia, including India, Pakistan, Bangladesh, Kenya, and Nigeria.
Evercare is wholly owned by the Evercare Health Fund, a US $1bn emerging markets healthcare fund managed by TPG and backed by its global impact investing platform TPG Rise. The Evercare Health Fund is comprised of the world’s leading impact investors and global development finance institutions.