M&A WATCH- Cleopatra signs business transfer agreement for 60% stake in Bedaya Hospital: Cleopatra Hospital Group (CHG) signed yesterday a business transfer agreement that gives it an effective 60% stake in Bedaya Hospital’s business through a JV that will be 40% owned by Bedaya founder Dr. Ismail Aboul Fotouh, CHG said in a statement (pdf). CHG will pay EGP 105 mn upfront for “the center’s medical equipment, working capital, and associated real estate assets,” the statement reads. We noted in July that Aboul Fotouh will continue to manage the centre once the transaction is completed.

The transaction is the first major consolidation in the field of in-vitro fertilization (IVF), which mostly consists of smaller clinics, the company told us in a separate statement. The 4.5k-sqm medical facility of Bedaya has three operating theatres, 19 recovery beds, and an embryo lab, according to the release. Bedaya is “one of the region’s strongest management and medical teams within the IVF sector,” CHG CEO Ahmed Ezzeldin said.

“This joint venture will allow us to deliver on our strategy to continue adding scalable services … [while allowing] Bedaya to benefit from the group’s scale and reach,” Ezzeldin said. The Bedaya center, which specializes in fertility and IVF treatments, is expected to contribute some 10% to CHG’s consolidated EBITDA.

Advisors: Zulficar & Partners was legal counsel to Cleopatra on the transaction.