Tibbiyah acquires 51% stake in Innovative Care for SAR 213.5 mln

Logo of Arabian International Healthcare Holding Co.

Arabian International Healthcare Holding Co. (Tibbiyah) completed the acquisition of a 51% stake in Innovative Care Co., which owns Riyadh-based medical and beauty center, New You Medical Center, for SAR 213.5 million, according to a bourse filing.  

The Nomu-listed firm will pay SAR 109.5 million, while the remaining SAR 104 million will be paid within three years, conditional on the future financial performance of the acquired firm.

The acquisition will be fully consolidated into Tibbiyah’s financials, with the relevant impact to appear in Q3 2022, the statement added.

Tibbiyah indicated it obtained all the relevant regulatory approvals, including the non-objection certificate from General Authority of Competition (GAC).

The value-accretive acquisition will offer Tibbiyah a compelling value, as New You’s current operations generate fixed annual revenue exceeding SAR 120 million, with EBITDA margins above 30%.  

New You has a strong balance sheet, high cash flows and no current leverage, which allow more expansions and will further help Tibbiyah diversify its client base and generate constant cash flows as well as high profit margins.

In March, Tibbiyah signed a definitive agreement to acquire a 51% stake in Innovative Care, Argaam reported.

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