Bahrain-based Capinnova, the Shari'a compliant investment banking arm of BBK, has acquired a strategic stake in SMMP, a leading Saudi-based manufacturer of medical disposable products, for $22 million.

The company, Saudi Mais Company For Medical Products is one of the leading manufacturers of medical disposables in the Kingdom having obtained the ISO 9001, the GMP, and the CE Mark certificates.

Capinnova partnered with the SMMP shareholders - Arab Supply and Trading Company (Astra) and Demas Company for Trading and Contracting (Demas) for the stake deal.

Annoucing its foray into Saudi health sector, Capinnova CEO Jamal Hijres said, 'The Kingdom has the largest healthcare market in the GCC and also the region's most technologically advanced infrastructure, hitech facilities and medical equipments.'

'The industry has a promising future and Capinnova therefore decided to acquire the minority stake in SMMP,' he noted.

SMMP, which was established in 1994 in Riyadh, applies the latest technology in the production of its medical products and adheres to international standards and local regulations (Saudi Food and Drug 0Authority).

'We are delighted to become a part of SMMP and are happy to share this news with our stakeholders. We look forward to synergize SMMP’s and Capinnova’s wealth of knowledge and expertise to further propel the company on to a faster growth trajectory,' he noted.

'Our industry is evolving and it is important to embark upon such landmark deals at the right juncture to take Capinnova to the next level. We are proud to have a highly respected entity – BBK, which is committed to the growth of not only Capinnova but also the Islamic finance industry as a whole,” he added.

Bassel Al Mahayni, the chief executive officer at SMMP, said the Saudi firm has embarked on a mission to innovate and manufacture the highest quality advanced medical disposable products.

'In pursuit of this new goal, we were scouting for the right partner to contribute to our business proposition. Today, we are delighted to have found the right synergy and we are confident that SMMP will grow to greater heights with Capinnova coming on board,' he observed.

Astra deputy CEO Ghassan Al Akeel said there is a tremendous growth potential in the industry and demand for healthcare services will continue to rise over the coming five years.

'Such demand is backed by rapid population growth along with the increasing rate of non-communicable and lifestyle diseases. We welcome Capinnova on board and we look forward to collaborate as a cohesive team to structure SMMP’s way forward into 2012 and beyond,' he added.-TradeArabia News Service