Meivo majority stake will boost sales, says SPIMACO chief

Saudi Pharmaceutical Industries and Medical Appliances Corporation's ( SPIMACO )  move to control a 51 percent stake in Egypt’s Meivo will help boost the Saudi company's production and sales, Al Arabiya has reported, citing Fahad bin Ibrahim Al Khalaf, Spimaco's chief executive.

The $19.3 million deal is part of SPIMACO's international expansion strategy. Meanwhile its exports account for 25 percent of its total sales, he added.

Access to the Egyptian market, Al Khalaf predicts, would also positively impact the company's total sales in the coming period.

Several financing agreements with creditors have reported already been made which would cover costs associated with the deal.

Argaam reported on Monday on the board’s approval to purchase the major stake in Meivo. The total value of $19.3 million (SAR 72.4 million) is the estimate before deducting net debts, which will be set upon closing the deal.