Tibbiyah purchases 100% of Al-Hammad Medical for SAR 35M

Logo of Arabian International Healthcare Holding Co. (Tibbiyah)

Arabian International Healthcare Holding Co. (Tibbiyah) signed a conditional binding share purchase agreement (SPA) to acquire 100% of Al-Hammad Medical Services Co. for SAR 35 million, according to a statement to Tadawul today, March 11.

The SPA is subject to a number of terms and conditions, including obtaining the regulatory approvals of the competent Saudi authorities, in addition to other commercial and regulatory terms.

The company will likely secure a banking facility from a local lender to partly finance the SPA, while the remaining part will be self-finance.

The deal aims to boost the company’s market share and help it expand into the distribution of medical supplies and consumables in both the public and private sectors. This is in addition to providing integrated solutions to clients and diversifying its product portfolio.

The SPA was inked with Mohammed Al-Hammad, Suleiman Al-Hammad, Abdullah Al-Hammad, and Fadid Trading and Industrial Investment Co. as sellers.

The relevant financial impact will likely appear by the end of 2024, with no related parties involved in the deal.

Al-Hammad Medical reported SAR 91.57 million in revenue in 2022. The table below shows development in the company’s top line from 2020 to 2022:

The relevant updates will be duly revealed in accordance with the relevant regulations and laws, the statement added.

Tibbiyah signed on July 19, 2023, a non-binding memorandum of understanding (MoU) with Al-Hammad Medical for the potential acquisition of 100% of the latter, Argaam’s data indicated.