United Pharmacies Group acquired 100% of Kunooz Pharmacies in a transaction valued at more than SAR 100 mn, CFO Mohammed Elmorsy tells EnterpriseAM. The acquisition involves the Makkah-based group absorbing Kunooz’s entire portfolio, which will be rebranded as United Pharmacies.

The details: United will finance about 30% of the transaction internally, with the rest financed through banks, Elmorsy tells us.

The rationale

United, established in 1990, wants to leverage Kunooz’s footprint in high-density urban areas as it looks to break the dominance of market incumbents Nahdi and Al Dawaa.

By the numbers: Elmorsy says the group is targeting a 13% market share by the end of 2026, rising to 15% by late 2027. The group plans to open 100 new branches across the Kingdom this year, bringing its total network to 600 stores, excluding the Kunooz acquisition and other transactions.

What’s next: A regional play

A prelude to cross-border expansion: Elmorsy says United plans on regional expansion, focusing on the UAE and Egypt within the next five years, shifting from domestic consolidation to regional export.

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