Care seals SPA to buy out Jiwar Medical Services for SAR 65 mln

Logo of National Medical Care Co.  (Care)

National Medical Care Co.  (Care) inked today, Jan. 22, a share purchase agreement (SPA) with SmartMed Co. to purchase 100% of Jiwar Medical Services Co. for SAR 65 million, according to a statement to Tadawul.

The acquisition deal will be financed through the healthcare provider’s internal sources and credit facilities. The valuation of Jiwar Medical Services was carried out using the discounted cash flow (DCF) method, price/earnings ratio (P/E), and EBITDA multiples.

It is subject to a number of terms and conditions, including but not limited to regulatory approvals, together with the approval of the General Authority for Competition (GAC).

Jiwar Medical Services owns a medical complex, with a capacity of 66 beds, located near the Holy Mosque of Makkah. The center is not running yet, but it aims to provide emergency medical services to pilgrims and the Holy Mosque’s visitors as well as city residents and workers. It is set to begin operating in Q2 2023.

The target company's audited financial statements reflect losses for 2020 and 2021 at SAR 5.12 million and SAR 3.17 million, respectively.

The deal comes in line with Care’s investment strategy, through expansions in the healthcare sector, while making use of the growth opportunities in the related markets.

The relevant financial impact will reflect positively upon finalizing the deal.

Care will announce the completion of the deal and any other material developments in due course.

The deal included no related parties, the statement added.

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