Tibbiyah, a prominent healthcare company in Saudi Arabia, has expanded its footprint in the sector through the acquisition of Al Hammad Medical Services. This deal, valued at SAR 35 million ($9 million), represents a key milestone for Tibbiyah as it strengthens its portfolio and enhances its position within the Kingdom’s healthcare landscape.
A Significant Step in the Healthcare Sector
Established in 1987, Al Hammad Medical Services has built a strong reputation in the healthcare industry. The company specializes in providing high-quality medical devices, consumables such as syringes and breathing circuits, and medical furniture tailored for hospitals and private clinics. In addition, Al Hammad offers project management services, ensuring comprehensive solutions for healthcare institutions.
This acquisition allows Tibbiyah to diversify and expand its core operations. Founded in 2013 by Al Faisaliah Group, Tibbiyah has quickly established itself as a leading player in the region with three main lines of business: medical systems, healthcare supplies, and a joint venture with the globally renowned Philips, which brings cutting-edge medical technology and solutions to Saudi Arabia.
As a company with over SAR 640 million ($170 million) in revenue, Tibbiyah is ranked among the top 500 companies in the Middle East and North Africa (MENA) region. The acquisition of Al Hammad Medical Services is expected to boost Tibbiyah’s offerings, allowing the company to serve a broader range of healthcare needs while solidifying its place as a key player in the region.
PwC’s Role in Facilitating the Deal
PwC, a leading global advisory firm, played an instrumental role in the successful completion of the acquisition. Led by experienced M&A professionals Imad Matar and Joseph Bou Eid, PwC guided Tibbiyah throughout the transaction. Their team provided expert advice, helping to ensure a smooth and efficient process from initial negotiations to final closing. The acquisition was financed through a combination of cash payments and credit from Saudi Arabian banks.
The role of M&A advisors like PwC cannot be underestimated, especially in deals of this magnitude. Their expertise in handling complex, cross-border transactions was crucial in delivering a seamless outcome for Tibbiyah.
Market Outlook and the Growing M&A Trend in the Middle East
This acquisition comes at a time when the Middle Eastern mergers and acquisitions (M&A) market is showing significant momentum. According to a recent report by Bain & Company, the M&A market in the region is expected to see continued growth through the end of 2024, with both inbound and cross-border deals driving this surge.
Companies like Tibbiyah are seizing opportunities to grow through strategic acquisitions, solidifying their positions and increasing their market share. The acquisition of Al Hammad Medical Services is a clear reflection of this trend, as healthcare organizations look to expand their service offerings to meet growing demand.
At Mindfield Resources, we specialize in providing businesses with the guidance and expertise needed to navigate complex M&A transactions. To explore how we can assist your organization in achieving its growth objectives.
FAQs
- What is the significance of Tibbiyah’s acquisition of Al Hammad Medical Services?
Tibbiyah’s acquisition of Al Hammad Medical Services enhances its product and service offerings, allowing the company to expand its presence in the healthcare sector. This move strengthens Tibbiyah’s ability to provide a wider range of medical devices, consumables, and project management services to healthcare institutions across Saudi Arabia.
- How did PwC assist in the acquisition process?
PwC played a crucial advisory role in guiding Tibbiyah through the acquisition process. Their M&A experts provided strategic advice, ensuring the smooth execution of the deal, from negotiations to financing and regulatory approvals.
- What is Al Hammad Medical Services known for?
Founded in 1987, Al Hammad Medical Services is recognized for supplying high-quality medical devices, consumables, and medical furniture to hospitals and clinics. The company also provides project management services, delivering comprehensive healthcare solutions.
- What impact will this acquisition have on Tibbiyah’s growth?
The acquisition will enable Tibbiyah to further expand its product offerings and enhance its services, accelerating the company’s growth in the healthcare sector. By integrating Al Hammad’s solutions, Tibbiyah can strengthen its market position and better serve the growing healthcare demands in Saudi Arabia.
- How is the Middle Eastern M&A market expected to perform in 2024?
According to Bain & Company, the Middle Eastern M&A market is set to experience strong growth through the end of 2024, driven by inbound and cross-border deals. The Tibbiyah-Al Hammad Medical Services acquisition is an example of the strategic partnerships taking place in the region as companies seek to expand their market presence.xample of this trend.