by
John R. Fischer, Senior Reporter | August 31, 2023
Centene is selling Circle Health Group to PureHealth for $1.2 billion.
Centene is selling off Circle Health Group, one of the largest independent hospital operators in the U.K., to PureHealth, the largest healthcare provider in the United Arab Emirates, for $1.2 billion, giving the Middle Eastern company an entrance into the British healthcare market.
The U.S. health insurer announced the transaction on August 28, saying that the deal will enable it to refine its portfolio around its core businesses, as part of its value creation plan.
Circle Health Group was founded in 2004 and is made up of 6,000 consultant specialists who perform a range of surgeries on and treat two million privately insured, self-paying, and NHS patients annually at 53 hospitals across the U.K. Centene first invested in the company in 2019, acquiring the remaining equity interests in July 2021.
“We are confident that this business will continue to thrive — providing access to high-quality care and delivering improved clinical outcomes under the ownership of Pure Health," said Centene chief executive officer Sarah London in a statement.
PureHealth is also the largest integrated healthcare network in the Middle East, running over 25 hospitals and more than 100 clinics with over 200 specialties, from tertiary to primary care. It also insures 2.5 million members and has a group procurement organization, over 150 labs, diagnostics services, rehab services, long-term care, medical supplies, and health technology services. Its more than 25,000 employees manage more than 50 million patient visits annually.
Abu Dhabi investment fund ADQ owns the majority of PureHealth, and the International Holding Company also holds a stake in it. Both are chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the national security adviser and a brother of UAE ruler Sheikh Mohammed bin Zayed.
"These benefits include the expansion of clinical knowledge and delivery of new medical techniques through enhanced collaboration between medical professionals, as well as the use of cutting-edge technologies and the provision of broadened treatment options for patients in the UAE," PureHealth said in a statement about the perks of the deal.
According to Reuters, PureHealth also recently paid 1.8 billion dirhams ($490.12 million) for an equity investment in Ardent Health Services, a U.S.-based private healthcare group.
The Circle Health Group deal is subject to customary closing conditions and regulatory approvals.
It is expected to be completed within Q1 2024.
