MEFIC Capital acquires 44% stake in Saudi cosmetic dermatology chain

MEFIC Capital, in its capacity as fund manager of MEFIC Private Equity Opportunities Fund 3, has acquired a 44 percent stake in Meras Arabia Medical Holding Company (MERAS), a chain of cosmetic dermatology and dental clinics in Riyadh.

The acquisition was done mainly through a capital injection, with the founders retaining control and management of the business, the fund said in a statement.

MERAS operates eight centers in Riyadh, and was founded by Dr. Abdulaziz Al Bakr who built the chain of clinics since 2012, mostly through the acquisition of existing standalone centers, fully refurbishing and upgrading them and then operating them based on MERAS standards.

“We are confident that with the support of MEFIC Capital, along with the prominent healthcare players who have invested in the fund, we are well positioned to take the company through its next stage of development and accelerate its expansion in the cosmetic dermatology sector,” Al Bakr said.

EKP Law Firm acted as legal advisor and Deloitte as financial due diligence advisor to MEFIC Capital. AlDhabaan & Partners in association with Eversheds Sutherland LLP acted as legal advisor to the sellers.

“Our investment in MERAS marks our first healthcare investment in Saudi Arabia, consistent with our strategy of investing in successful local SMEs enjoying strong track record and solid growth potential,” Joseph Hakme, Head of Private Equity at MEFIC Capital, said.

“With the closing of our fourth private equity fund, we look forward to continue expanding MEFIC’s private equity footprint in the Kingdom,” Hakme added.

MEFIC Capital is regulated by the Capital Market Authority (CMA No. 06029-37).