Care to acquire 100% of Al Salam Health Medical Hospital

Care is getting 100% of Al Salam Health: National Medical Care (Care) signed a share purchase agreement with Saudi Medical Care Group (SMG) to fully acquire Al Salam Health Medical Hospital, according to a disclosure to Tadawul. The acquisition will see Care pay SAR 44 mn for the hospital; Care will finance the transaction through a mixture of existing cash and bank loans.

Familiar faces: SMG owns 100% of Al Salam Health and is a substantial shareholder in Care with a 49.2% stake, according to the disclosure.

Pending approvals: The acquisition is still subject to regulatory approvals, including the General Authority for Competition’s non-objection and consents from the general assemblies of both healthcare providers and other customary conditions.

The rationale: The acquisition aims to expand Care’s healthcare offerings in the market and tap on potential investments in the sector, according to the disclosure. It is part of Care’s five-year strategy — announced in 2022 — to extend its service offerings in Riyadh and widen its patient base by serving new target groups.

About Al Salam Health Medical Hospital: Located in Al Khobar, Al Salam Hospital is one of the largest private hospitals serving the Eastern Province with an area spanning 100k sqm and a 100-bed capacity, according to its website. Its revenues were up 10.6% y-o-y to SAR 93.1 mn in 2023.

ADVISORS- GIB Capital was tapped as Care’s financial advisor for the acquisition, with Law Firm of Alsalloum and Altoaimi acting as its legal advisor.