Thenya buys back hospital from PE fund

The mergers and accusations market got a major boost after the Competition Authority of Kenya (CAK) gave the green light to the acquisition of a 75 per cent stake in Healthlink Management Ltd, the controlling entity of Nairobi Women’s Hospital, by its founder, Dr. Sam Maina Thenya, from American private equity (PE) fund, Evacare.

The much anticipated acquisition which was subject to rigorous scrutiny by the authority to ensure compliance with regulations and safeguard fair competition. “The hospital which is one of the largest in the country has 1000 employees. This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the health care market,” said the authority.

Evaluation report

After evaluation, the authority says to have concluded that the acquisition meets all necessary legal requirements, and it is expected to have a positive impact on the healthcare landscape in the region.

Dr. Thenya, the entrepreneur and medical professional behind Nairobi Women’s Hospital, expressed his gratitude upon receiving the regulatory approval.

“This acquisition represents a significant milestone for both Nairobi Women’s Hospital and the broader healthcare community in Kenya. It will enable us to further our mission of providing high-quality and accessible healthcare services to women while also expanding our offerings to benefit an even larger patient base,” he said.

The hospital was started after Thenya pitched the idea of an institution dedicated to women following increase in gender based violence to his employer, who however rejected it, and told him to open his own hospital and take the idea there. This triggered his decision to start the hospital at the age 31, breaking away from formal employment to start his own private hospital.

The Nairobi Women’s Hospital went on to establish itself as an institution that primarily focuses on women’s health and wellness. With a network of branches across the country, it has been catering to the medical needs of women of all ages for over two decades now.

Evacare, the American private equity fund that initially held the 75 per cent stake in Healthlink Management Ltd, had played a crucial role in supporting the hospital’s growth and development over the years.

However, with this latest acquisition, Dr. Thenya will regain a controlling interest, aligning the hospital’s management with his long-term vision for the institution.

The transaction is also expected to provide Evacare with an opportunity to successfully divest its healthcare investments in Kenya.

The private equity fund has shown a commitment to fostering growth in various sectors, and this move will allow them to reallocate their resources and focus on other strategic ventures.

As Dr. Thenya takes the reins of Nairobi Women’s Hospital once again, stakeholders in the healthcare sector are optimistic about the positive changes that could follow. The hospital’s expansion plans, enhanced medical offerings, and potential technological advancements could potentially benefit thousands of patients in the region.

As the dust settles, the focus will shift to the implementation of Dr. Thenya’s vision, setting the stage for a new era in the healthcare industry.