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Saudi medical equipment provider Arabian International Healthcare Holding Company, also known as Tibbiyah, has acquired a controlling stake in Innovative Care Company.
The acquisition of a 51% stake, valued at SAR213.5 million ($56.8 million), has just been completed, the company said in a statement to the Saudi Stock Exchange (Tadawul) on Tuesday.
The transaction is said to be beneficial for Tibbiyah and its shareholders. Headquartered in Riyadh, Innovative Care owns iPharma, as well as medical and beauty centre New You, which generates steady annual revenues in excess of SAR120 million and posts EBITDA margins well above 30%.
"New You has a strong balance sheet with high cash generation and no debt, allowing for further expansion in new business lines, as well as geographical locations in the kingdom," the company said.
The acquisition is through a cash payment of SAR109.5 million, with the balance of up to SAR104 million linked to an "earn-out structure" over three years, the statement said.
(Writing by Cleofe Maceda; editing by Seban Scaria)
