Al Hammadi inks deal to acquire Medical Support Services Co.

Al Hammadi Company for Development and Investment signed on Monday a memorandum of understanding (MoU) to explore acquiring 100 percent of Medical Support Services Co., it said in a statement to Tadawul.

The transaction, including the final price, is subject to financial and legal due diligence as well as other relevant studies and regulatory approvals.

The MoU is valid for two months from the signing date, but can be extended with both parties’ consent.

Medical Support Services Co. is mainly engaged in selling and buying medicines and medical supplies, providing marketing services, and offering medical and non-medical logistics services to hospitals and medical centers.

“The acquisition is in line with Al Hammadi's growth plans and will enable it to benefit from enhancing its existing logistics infrastructure to support its three hospitals,” the statement said.

The deal will also provide exposure to the pharmaceutical and medical supplies distribution and logistics sub sector, Al Hammadi noted.

No related parties are involved in the transaction.

Al Hammadi on Monday reported a net profit of SAR 77.2 million for the first nine months of 2017, up 23.6 percent year-on-year (YoY).

The company is in talks with National Medical Care Co. over a potential merger.