Gulf Pharmaceutical Industries (Julphar) has announced its divestment from Zahrat Al Rawdah Pharmacies, which will be taken over by BinDawood Holding for a total cash consideration of SR444.1 million ($118.25 million).
The company is a 100% indirectly owned subsidiary of Julphar and operates 173 retail pharmacy outlets in Saudi Arabia.
BinDawood is a leading Saudi listed retail conglomerate operating Danube and BinDawood grocery stores.
The transaction is in line with Julphar’s strategy to divest non-core activities and pivot towards future portfolio growth areas. The company will invest part of the divestment proceeds in its growing pipeline of value adding and specialty pharmaceutical products. In addition, the company is exploring different strategic options for establishing the development and manufacturing of pipeline products in Saudi Arabia.
Expanding pharma product business
Looking ahead, Julphar aims to focus on expanding its pharmaceutical product business in the region with the launch of new innovative products in line with its pipeline expansion strategy. Julphar has around 100 products in its product pipeline in different stages.
Sheikh Saqer Bin Humaid Al Qasimi, Chairman of the Board, Julphar, said: “The divestment of our retail pharmacies operations in Saudi Arabia is a further step in Julphar’s strategy to divest non-core assets and unlock value for its shareholders.”
Dr Basel Ziyadeh, Chief Executive Officer, Julphar, said: “We will continue strengthening our core manufacturing and commercialisation activities in Saudi Arabia where we see very attractive growth opportunities with higher strategic value to our shareholders in the future. The divestment proceeds support our balance sheet besides accelerating our strategic plan execution.”
Sustainable growth
Dr Abdulrazzaq BinDawood, Chairman of the Board, BinDawood Holding, said: “This acquisition is a significant step in strengthening our presence in the health and wellness sector. By integrating pharmacy services into our stores, which enhances customer convenience and shopping experience. This move reflects our commitment to sustainable growth and customer engagement.”
Ahmad AR BinDawood, Chief Executive Offiicer, BinDawood Holding, said: “This acquisition is in perfect alignment with our strategic vision and bolsters Saudi Arabia's Vision 2030 by venturing further into the health and wellness sector and enriching our store network. By incorporating Zahrat's 173 pharmacies into our retail landscape, we are set to establish a comprehensive destination for our clients, offering an extensive array of medical, wellness, and personal care products. This move positions BinDawood Holding as the pioneering retailer in Saudi Arabia to integrate pharmacy services within its stores, facilitating smooth access to healthcare products alongside everyday essentials. This reflects our dedication to enhancing customer engagement and fostering sustainable growth in the long term.”
--TradeArabia News Service
