Saudi’s National Medical Care acquires Al Salam Health for US$12M

SAUDI ARABIA – National Medical Care Company (Care) has signed an agreement with Saudi Medical Care Group to acquire Al Salam Health Medical Hospital for 44 million Saudi riyals (US$12 million).

The move aims to expand Care’s investment strategy in the health services sector.

The transaction is subject to several conditions, including regulatory approvals and non-objection from the Saudi competition authority and the company’s general assembly.

Al Salam Health Medical Hospital is a multi-specialty hospital in Riyadh with a 100-bed capacity.

In 2023, the hospital reported a revenue of SAR 93 million.

Care appointed GIB Capital as financial advisor and Alsalloum and Altoaimi as legal advisors.

The medical provider will announce the completion of the transaction or any other material development in due course.

The agreement includes customary representations and warranties provided by the seller and the buyer.

Furthermore, the deal closure is subject to several conditions, including without limitation, the receipt of regulatory approvals or non-objection (including the General Authority for Competition), the consent of Care and Saudi Medical Care’s shareholders on the transaction and other customary conditions.

The deal contributes to achieving Care’s investment strategy to expand in the health services sector and take advantage of the growth opportunities available in the relevant market.

The related financial impact will appear once regulatory measures are finalized.

There are several related parties to the agreement, mainly Saudi Medical Care Group that owns 49.20% of Care and 100% of Al Salam.

Other associated parties are Saad Al-Fadly, Chairman of Care and CEO of Hassana Investment Co., which owns Saudi Medical Care Group; Ahmed Al-Qahtani, a board member of Care and Chairman of Saudi Medical Care Group; and Faraj Al-Qabani, a board member of Care and Acting CEO of Saudi Medical Care Group.

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