American multinational pharmaceutical firm Johnson & Johnson has teamed up with private equity firms to buy out Naivasha-based South Lake Medical Centre in a deal valued at nearly Sh100 million.
The hospital was acquired from Flamingo Horticulture Ltd which established the facility to serve its low-income farm workers.
The PE firms that partnered with Johnson & Johnson in the deal are South Africa’s Inqo Investments Limited and London-based Sumerian Partners.
New Jersey-based Johnson & Johnson, which deals in medical devices, pharmaceutical and consumer goods, invested in the hospital through its social impact fund.
“Participating alongside Inqo in this round are Johnson & Johnson's social impact fund and Sumerian Partners. A total investment of $950,000 (Sh98 million) between the three parties will be made in a combination of equity and soft loans,” Inqo, which is listed on London’s NEX Exchange, said in a trading update.
The healthcare facility has 27 beds and also serves as a private referral-level hospital to smaller clinics in the surrounding flower farms and nearby communities.
The Naivasha region is predominantly populated by low income workers in the horticultural, agricultural and tourism industries. The nearby densely populated slum area of Karagita is home to approximately 27,000 people. Inqo says that with overcrowding at the closest government hospital in Naivasha, there is need for additional affordable medical services in the region.
South Lake Medical Centre is able to offer high quality medical care at an average cost of $2 (Sh200) per treatment, the PE firm said.
The hospital receives around 64,000 patient visits per annum with the capacity to treat three times this number. It offers a range of in and outpatient services including consultations, laboratory testing, radiology and pharmacy services.