PARIS, Sept 8 (Discoperi) - France's development finance institution Proparco has acquired a majority equity stake in Diani Beach Hospital Limited (DBH), a leading private healthcare provider in Kenya. The deal is part of the FISEA+ initiative to support small and medium-sized enterprises in Africa.
| Acquirer | Proparco (FR) |
|---|---|
| Target | Diani Beach Hospital (KE) |
| Deal type | acquisition |
| Stake acquired | >50% |
| Close date | 2022-09-08 |
| Announcement date | 2022-09-08 |
| Financial advisor (buy-side) | Ascend Capital Group |
The acquisition aims to improve healthcare provision for an estimated 600,000 Kenyans by expanding Diani Beach Hospital's services and quality of care in underserved regions. Ascent Rift Valley Fund II also participated alongside Proparco.
Deal Mechanics
Proparco acquired a controlling stake in DBH to support the hospital’s growth, strengthen its operations, and expand healthcare provision across Kenya's South Coast. The investment is part of FISEA+, a high-impact initiative dedicated to fostering MSMEs in Africa.
Strategic Rationale
Diani Beach Hospital, founded in 1997 with just ten beds, has grown to become the largest private healthcare facility in Kwale County. It provides primary and secondary care services to a broad range of patients, including local residents, tourists, and corporate clients.
With this acquisition, Proparco aims to bolster DBH's infrastructure and service quality while increasing access to essential medical services for an underserved population. The hospital’s expansion will also create jobs and enhance women's employment opportunities in the region.
Financial Context
The deal is a strategic move by Proparco to promote sustainable development goals through private sector investment. FISEA+ seeks to support African businesses and MSMEs, providing them with funding and growth opportunities.
Advisors
The financial advisor on the buy-side was Ascend Capital Group. No information was available regarding sell-side advisors or legal counsel for either side of the transaction.
Outlook
Diani Beach Hospital expects to leverage Proparco’s support and expertise to accelerate its growth strategy, enhancing regional healthcare access and quality in an underserved area of Kenya. The deal marks a significant milestone for DBH as it continues to expand services across the South Coast.