Care acquires SAR 44M hospital in Riyadh

Logo of National Medical Care Co. (Care

National Medical Care Co. (Care) signed on June 23 a share purchase agreement with Saudi Medical Care Group to acquire the entire share capital of Al Salam Health Medical Hospital for SAR 44 million, subject to customary purchase price adjustments.

Al Salam Health Medical Hospital is a multi-specialty, 100-bed facility located in Riyadh. The acquisition value will be paid in cash through the company’s internal sources and bank loans, Care said in a statement to Tadawul.

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The agreement includes customary representations and warranties provided by the seller and the buyer. Furthermore, the deal closure is subject to a number of conditions, including without limitation, the receipt of regulatory approvals or non-objection (including the General Authority for Competition), the consent of Care and Saudi Medical Care’s shareholders on the transaction and other customary conditions.

The deal contributes to achieving Care’s investment strategy to expand in the health services sector and take advantage of the growth opportunities available in the relevant market. The related financial impact will appear once regulatory measures are finalized.

There are several related parties to the agreement, mainly Saudi Medical Care Group that owns 49.20% of Care and 100% of Al Salam. Other related parties are Saad Al-Fadly, Chairman of Care and CEO of Hassana Investment Co., which owns Saudi Medical Care Group; Ahmed Al-Qahtani, a board member of Care and Chairman of Saudi Medical Care Group; and Faraj Al-Qabani, a board member of Care and Acting CEO of Saudi Medical Care Group.

The following table shows Al Salam Hospital’s revenue: